Overnight we have the release of both Australian GDP data as well Chinese manufacturing data which are both likely to cause a stir for Pound to Australian Dollar exchange rates.
Australian GDP data for the fourth quarter is expected to show growth of 1.9% year on year and 0.7% quarter on quarter. Australia has now avoided recession for over 25 years and holds the record globally only second to the Netherlands. Therefore, the news is likely in my opinion to be rather positive which could result in AUD strength.
Chinese manufacturing data has been relatively strong recently and Trump’s campaign threat of imposing a 20% on Chinese goods coming into the US has seemingly been forgotten.
Therefore, this is another reason why I think tonight’s data could be positive so if both data announcements come out as I expect we could see GBPAUD exchange rates drop below 1.60 on the Interbank level.
On Thursday Australian Trade Balance data is due to be published and again my expectation is for a positive announcement based on recent good news down under. We also see the release of both Import and Export data on the same day so overall I expect a strong end to the week for the Australian Dollar.
The Pound is still struggling with the uncertainty surrounding Article 50 and until we get any clarity as to what may happen I think the Pound will remain under pressure.
If you’re looking at at moving currency over the next few weeks and concerned about what may happen to the Australian Dollar it may be worth organising a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
Having worked in the foreign exchange industry since 2003 I am confident that I can not only offer you bank beating exchange rates but also help you with the timing of your transfer of funds.
If you would like further information or a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]