The Pound has hit its best rate to buy Australian Dollars in two weeks after Sterling looks to be starting a fightback against a number of different currencies.
Australian economic data overnight was relatively mixed with the Unemployment rate moving up from 5.4% to 5.5% but the participation rate for December also rose so it appears as though they cancelled out each other.
Also, overnight the Chinese released GDP figures which rose but Retail Sales for December fell. As China is Australia’s biggest trading partner this can often have an impact on Australian Dollar exchange rates but as the data was also mixed this is the reason why we saw little impact on the value of GBPAUD exchange rates.
I think at this time tomorrow we could see further movement on exchange rates when UK Retail Sales are released for December. This will make for very interesting reading as the data will include the festive period and will give us an insight into how the UK economy is performing at the moment.
There have been rumours circulating that the Bank of England are potentially planning for an interest rate hike towards the end of the year. This could be an answer to inflation which is still way above the target at the moment as 3% and another reason for Sterling’s recent gains.
The GBPAUD exchange rate is still close to its recent highs so if you’re considering transferring Australian Dollars it may be worth taking advantage of this short term spike.
If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Australian Dollars against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.
Email me directly and I look forward to hearing from you.
Tom Holian [email protected]