The Pound has had a mixed week vs the Australian Dollar after Australia announced another 37,400 new jobs last month compared to the expectation of just 5,000. However, although this is good news employment fell by over 11,000.
The mixed data caused a brief bout of strength for the Australian Dollar vs the Pound but since then we have seen GBPAUD exchange rates once again hit 1.75 on the Interbank level.
The Australian Dollar has been under pressure for the last two months caused by both the slowdown in the US as well as China and a fall in the value of commodities.
The problem that the Australian economy is facing in general is that both the Melbourne and Sydney property markets are still very buoyant but the economy down under is struggling particularly the mining industry.
Therefore, under a more settled environment the Reserve Bank of Australia may have looked to cut interest rates in an attempt to rejuvenate the economy but if they do this would simply just exacerbate the problem for the Australian property market.
Therefore, this is part of the reason why in my opinion the Australian Dollar has weakened recently.
Also, if we turn the focus towards what is happening politically in the UK we appear to be more settled and the likelihood is that the Conservatives will win next month’s general election due to take place on 8th June.
Typically, when the existing government wins the next election this tends to provide the economy involved with a positive boost as it gives businesses stability and more often than not this results in Sterling strength.
However, this time as there appears to be no obvious opposition to a Tory win next month so it could be argued that the exchange rate movement for GBPAUD exchange rates is already priced in.
If you would like more information or a free quote when buying or selling Australian Dollars then contact me directly. Working for one of the leading currency brokers I am able to offer you bank beating exchange rates.
Tom Holian [email protected]