Sterling vs the Australian Dollar yesterday hit its highest level in a few weeks as the Pound continued its recent good run of form against all major currencies.
The US election has seen the Pound improve owing to Trump’s positive relationship between the UK and the US. The news has also caused riskier and commodity based currencies to weaken and this has resulted in losses for the Australian Dollar.
The Australian economy is heavily reliant on the Chinese economy and with Trump suggesting in his campaign that he would look to increase tariffs on Chinese goods shipped to the US this has caused the Australian Dollar to suffer as a result.
However, at the end of the week it was announced that both Scottish and Welsh governments will also be able to intervene with the Article 50 issue. This caused some volatility during yesterday’s trading session but the falls on GBPAUD rates were limited.
As we go into next week arguably one of the biggest data releases to watch out for will be on Wednesday when the US FOMC minutes are published. The minutes will give us an insight as to whether the US are preparing to raise interest rates soon and if so this could cause further Australian Dollar weakness vs the Pound.
The reason is that if the US increase interest rates then global investors will sell off the AUD if favour of the USD and GBPAUD rates could benefit. Therefore, if you’re looking to buy Australian Dollars in the short term this could be the catalyst needed to see rates improve.
Having worked in the industry since 2003 for one of the UK’s leading currency brokers I am confident of offering you better exchange rates than your bank as well as helping you with the timing of your currency transfer.
If you have a currency transfer to make and would like a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]
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