So far during 2017 the Australian economy has been performing extremely well with gains vs the Pound of over 5% since the turn of the year.
Unemployment data down under is getting better and better and so far the Australian Dollar is one of the best performing currencies of 2017.
The Reserve Bank of Australia came out recently to confirm that they will be keeping interest rates on hold at 1.5% and with much higher interest rates than the rest of many western economies the Australian Dollar is often used in carry trading. This means borrowing in a low yielding currency and investing in a higher return and this is another reason why the currency is still strong against the Pound.
Tomorrow night however we could see a small shift in GBPAUD rates as the US Federal Reserve are due to release their latest set of minutes from their previous meeting.
If there is any hint that the Fed may have further appetite later this year to raise interest rates this could see a sell off for riskier commodity based currencies including the Australian Dollar so we could see GBPAUD rates go in an upwards direction overnight.
Turning the focus back to what is happening in the UK we have the House of Lords discussions taking place at the moment with an answer due by tonight.
They are currently discussing the Brexit bill and the likelihood is that there will be no obvious challenge to what has been suggested previously and if this is the case we could see Sterling strength as it provides the government with more control to take things forward.
The other significant data release to concern anyone with a Sterling vs Australian Dollar requirement will come tomorrow with UK GDP data for the fourth quarter of 2016. The expectation is for 2.2% year on year so anything different is likely to cause big movements.
Overall there is a lot of data due before the end of his month both politically and economically which will impact GBPAUD rates so it is important to stay up to date.
If you have a pending currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you. I have worked in the industry since 2003 and I’m confident not only of being able to offer you savings but also help you with the timing.
Tom Holian [email protected]