The Pound has seen some big gains vs the Australian Dollar on Friday afternoon following the announcement that US inflation data came out lower than expected.
We have seen all the commodity based currencies weaken against the Pound and this is good news for anyone looking to buy Australian Dollars with Sterling.
We also saw lower than expected Chinese Import data and as China is the largest trading partner with Australia this has caused the Aussie Dollar to weaken against the Pound.
The reason why US inflation data is so important to the foreign exchange market is that as the US is the world’s leading economy any slowdown in inflation could mean less appetite for an interest rate hike in the US but more importantly this could show a bit of a global slowdown.
If you combine US inflation with lower than expected US Retail Sales this also has had a negative effect for commodity based currencies.
Therefore, the demand for currencies affected by the value of their raw materials and commodities have weakened. Indeed, the rate to buy Australian Dollars has hit 1.74 which is the highest rate since mid December.
The ongoing uncertainty of how the Brexit talks will go are likely to keep the Pound under so personally I think this positive movement could be relatively short lived so if you’re thinking of buying Australian Dollars it may be worth taking advantage of these current levels.
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]