Sterling has experienced a solid recovery against the Australian Dollar since hitting recent lows during early August.
Yesterday we saw another good day for Sterling with the release of UK manufacturing data which showed levels of 53.3 compared to the expectation of 48.3.
Following the news Sterling gained by another 1% against the Australian Dollar or the difference of £1,100 on a currency transfer of AUD$200,000.
There have been many predictions that the UK would be facing a potential recession in the future following the vote to leave the European Union but it appears as though most of the economic data has come out much stronger than expected.
Later today we await one of the most important data releases of the month in the form of US non-farm payroll data and as this figure is so difficult to predict this can often cause huge amounts of volatility for major currencies.
Indeed, if the figures come out strongly then this could potentially influence the US Federal Reserve to look at raising interest rates later this month which could result in Australian Dollar weakness.
Currently the expectation is for US unemployment to drop to 4.8% and this could put further pressure on an interest rate hike.
The problem this has for the Australian Dollar is that although Aussie interest rates are higher than the US if the world’s leading economy shows signs of growth then global investors are less likely to hold riskier currencies including the AUD and this could send GBPAUD rates in an upwards direction. Potentially good news if you’re looking to send money to Australia.
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]
[contact-form to=’[email protected]’ subject=’ADF 2/9/16′][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Phone Number’ type=’text’/][/contact-form]