Sterling came under pressure against the AUD yesterday, following the release of the latest UK inflation data.
GBP/AUD rates have fallen back towards 1.82, a dip of almost 4 cents from last week’s high.
Inflation fell to 2.5%, which was under the markets predicted market figure of 2.7%. Whilst this could be viewed as a positive in the sense that it is creeping back towards the government’s target level of 2%, it has also dampened expectations of a prospective interest rate hike by the Bank of England (BoE).
This potential rate hike had most likely been factored in to Sterling’s value, at least to some extent by investors, as such yesterday’s data has dampened the markets expectation and as investors have sold off their Sterling positions.
Looking at the AUD and it had started to find support against the Pound around 1.85, with the realignment welcomed by any clients looking to sell AUD.
One of the main reasons the AUD has struggled of late, is due to pressure on the global markets. Generally, when there is an upturn in global growth currencies such as the AUD will prosper as investors look towards riskier assets, with generally higher interest returns. When the global markets are under pressure, investors will move their funds away from these currencies and back into safer havens such as the USD or CHF.
President Donald Trump’s recent trade tariffs are putting a huge strain on commodity based currencies such as the AUD, which is why clients holding AUD may wish to take advantage of the current spike and remove any market risk.
If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.