RBA governor to step down and impact for the Australian Dollar (Tom Holian)

AUD to GBP Quiet as Traders Wait for Data Releases

The Reserve Bank of Australia Glenn Stevens is now entering his final week in charge.

After steering the Australian economy through the last decade his legacy has been generally positive.

He has managed to keep the Australian economy away from recession and with the business relations with the Chinese very strong this has also helped to strengthen the Australian Dollar during this time.

However, his reign is due to finish and Lowe will take over. During any change of authority particularly after such a long time at the helm we could see a bout of volatility for the Australian Dollar coming up.

Australia’s heavy reliance on China also opens them up to problems if the world’s second largest economy continues to falter.

Chinese Retail Sales are due out on Tuesday morning and this could send Sterling even higher after fighting back since the lows post-Brexit.

On Thursday Australia releases unemployment levels for August and with expectations for 5.7% this is rather positive but if we see any falls this could cause the Australian Dollar to weaken against Sterling.

Turning the focus back to the British economy we have seen some very positive data during August and with inflation due to be released on Tuesday any signs of this going in an upwards direction could also help to see Sterling gaining vs the Australian Dollar.

On Thursday the Bank of England will meet to discuss their latest interest rate decision and although I don’t expect to see any change I am interested to see what Bank of England governor will say following the decision.

Mark Carney has recently claimed that the central bank has helped to soften the blow of the Brexit vote by intervening very quickly and any further positive reassurances could see Sterling move towards 1.80 against the Australian Dollar.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]