For clients that converted Australian dollars into sterling or sterling into Australian dollars last week, both sets of clients were provided opportunity which many of clients took advantage of.
Thursday morning Retail Sales numbers were released for Australia and the numbers exceeded expectation which provided an extra cent for clients holding Australian dollars and purchasing sterling. Furthermore the tides turned Friday afternoon when reports were suggesting the Spanish and Dutch finance ministers had agreed that they seek the softest Brexit deal as possible, which is good news for the UK economy and consequently sterling.
This week the first key release which will impact GBPAUD exchange rates is the UK inflation numbers Tuesday morning. Forecasts are suggesting a slight rise to 3.2%. If this occurs more questions will be asked of the Bank of England, and consequently I expect this could provide a boost for the pound. However medium term forecasts are suggesting that inflation will drop over the next 6 months below 3% so I don’t expect a reaction from the central bank.
Later in the week (Thursday morning) Australia release Employment change, Unemployment rate and Participation rate numbers. Forecasts are suggesting all three releases are close to previous therefore if this is the case this could be a non event. However regular readers will be aware that Unemployment rate numbers can have a major impact on future monetary policy therefore keep a close eye on this release.
GBPAUD exchange rates have fluctuated 8 cents in 6 weeks, and with Brexit negotiations on going, many leading forecasters having a difference of opinion in regards to the future of the Australian dollar, I expect exchange rates will continue to fluctuate. Therefore if I were converting GBPAUD exchange rates I would look to use a limit order, which allows you to set a target rate and if the market spikes to that rate our automatic system will buy the currency on your behalf.
For more information on how I can help you save money on your currency transfer feel free to email me on [email protected].