UK services sector data published this morning came out much better than expected and this has put an end to the Pound’s recent demise vs the Australian Dollar.
The sector rose quicker than expected during May which has given rise to a possible hint of an interest rate hike.
The PMI data hit a three month high at 54 compared to the previous month of 52.8 but at the same time the survey did suggest that growth could slow down later this year.
The good news for the Pound is that the services sector accounts for over three quarters of the UK’s economy but is this good news a temporary positive sign?
The uncertainty surrounding Brexit clearly is keeping the Pound under a lot of pressure against a number of different currencies and the EU withdrawal bill will be discussed next week and this could cause further problems for the Pound.
Personally speaking I cannot foresee an interest rate hike coming for the UK at all during the course of the year as we are still deeply involved with the Brexit talks so anything to rock the boat in terms of monetary policy is highly unlikely.
Also, with UK GDP only recently growing at its slowest growth in 6 years a month ago and with inflation falling I don’t think the Bank of England will have much appetite to change the status quo.
Friday could be the biggest day of the week for anyone with an Australian Dollar transfer to make as we start the day with Chinese Trade Balance figures combined with Chinese Import and Export data. Following this the latest NIESR UK GDP estimate for the last three months will also be published and if we see another negative release this could put further pressure on Sterling vs the Australian dollar.
If you would like further information or a free quote when moving Australian Dollars then contact me directly and I look forward to hearing from you. A quick email could save you a lot of money on your currency transfer.
Tom Holian [email protected]