The Pound has once again charged in an upwards direction vs the Australian Dollar breaking past 1.78 overnight.
Australian Inflation data for the final quarter of last year came out lower than expected and although the figure rose to 1.9% it came in below expected figure of 2%.
This means that the likelihood of the Reserve Bank of Australia raising interest rates at any point in the near future is severely reduced and this is why we have seen the Australian Dollar weaken against Sterling.
The CPI report also showed huge inconsistencies across the country with the cities in the east all above 2% but with Perth in the west showing a level of just 0.8% highlighting the disparity between the regions which makes things more difficult for the RBA to manage the economy effectively.
The same report also highlighted differences in the housing market from one region to another and this is why the Australia Dollar has weakened as confidence is likely to also fall down under which is good news for anyone looking to buy Australian Dollars with Sterling at the moment.
Chinese data has also been rather mixed recently and as China is the largest trading partner with Australia any lower than expected news can often have a negative impact on the value of the Australian Dollar.
We end the week with the latest Producer Price Index data from Australia and anything different could influence the rate to convert Australian Dollars so make sure you’re well prepared.
If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars compared to using your own bank then feel free to contact me directly for a free quote and I look forward to hearing from you.
Having worked for one of the UK’s leading currency brokers for 15 years I am confident of being able to help you.
Email me directly Tom Holian [email protected]