The Australian Dollar has once again weakened after recovering against the Pound during the middle of the week.
The Pound experienced problems on Wednesday when the UK released lower than expected manufacturing and production data but the losses for Sterling were short lived.
The European Central Bank announced yesterday that they would keep interest rates on hold and not extend their current QE programme and this caused a sell off for the Australian Dollar which weakened it against the Euro, US Dollar and the Pound.
As Australia’s largest trading partner the Chinese also released their latest set of inflation data this morning coming out at just 1.3% year on year compared to the expectation of 1.7%.
Any signs of the Chinese slowing down will often cause Australian Dollar weakness and this is another reason for the movement between GBPAUD rates.
Australian Home Loans were also a lot lower which shows potential problems for the housing market and represents a loss of confidence in the sector.
The next potential cause for volatility between Sterling and the Australian Dollar will come on Wednesday when the latest Westpac consumer confidence survey is published and this will be closely followed by UK unemployment data on Wednesday.
If you need to make a transfer at some point next week it may be worth organising this prior to Wednesday’s data release to avoid any potential negative movement against you.
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]
Alternatively call me directly on 01494787478 and ask for Tom Holian. I look forward to hearing from you.