A fairly quiet end to the week for Australian economic data – Bank of England interest rate decision is key today on the markets (Daniel Wright)

AUD GBP Struggles for Direction with Retail Sales Due

The Australian Dollar has remained fairly strong over the past few weeks, mainly down to the Australian economy still posting fairly strong GDP, a strong labour market and solid business investment in recent data.

The one thing that has held the Australian Dollar back has been the weakening of commodity prices and the issues with North Korea causing the perceived ‘riskier’ currencies to lose a little strength.

Chief economist at NAB (National Australia Bank) recently commented that he feels the RBA (Reserve Bank of Australia) may look to raise interest rates in mid 2018 should this trend of positive news continue.

Today will be key for anyone with an interest in buying Australian Dollars with Sterling or selling Sterling to buy Australian Dollars. At Midday in the U.K we have the Bank of England interest rate decision and monetary policy statement. Recent news this week has shown that inflation in the U.K is rising at a fairly rapid pace and currently is sat at 2.9% whilst average earnings figures are only creeping up at 2.1%.

It is doubtful that we will see any changes to interest rates from the Bank of England but what will be key is any indication that the rates may move sooner than the expectation of 2019 then GBP/AUD exchange rates may well be in for a volatile afternoon, or night if you are based in Australia.

If you have a currency exchange to carry out in the coming days, weeks or months then it would be prudent to get in touch with us directly here as we are experts in this field and can both save you money and ensure your funds arrive where they need to be in a smooth and efficient transaction.

Should you wish to contact me (Daniel Wright) personally then you can get in touch with me by email on [email protected] or by contact our trading floor during U.K trading hours on +44 (01494 725353) quoting Australian Dollar Forecast and asking for me personally.