In the early hours of this morning the latest unemployment rates were released for Australia. As expected unemployment rose by 0.1% to 5% however the market reaction has been limited as this was to be expected. Next week Australia will release their latest inflation numbers and these should be watched closely. Yearly inflation is set to fall to 1.5% from 1.8% and monthly inflation is set to fall 0.2% from last months 0.5%. If the numbers are released as expected this is going to put severe pressure on the Reserve Bank of Australia to rethink their monetary policy. As house prices are continue to fall and the market is stagnant, I expect a cut interest rates would be on the horizon and in turn this would devalue the Australian dollar.
In recent weeks the Australian dollar has been making gains against the pound. GBPAUD rates have dropped 5 1/2 cents making a AU$400,000 purchase £6,700 more expensive. The pound has come under scrutiny due to the ongoing Brexit negotiation. The 6 month extension has put further pressure on businesses due to the uncertainty. The negotiations will continue in the upcoming weeks however I don’t expect Theresa May and Jeremy Corbyn to find common ground. Therefore I am expecting the pound to continue to decline and be trading in the 1.70s sooner rather than later.
If you are trading GBPAUD this week, month or year I would recommend emailing me with the reason for the transfer (company goods, property purchase) and your timescales and I will response with the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage, I would strongly recommend you compare rates as I am confident I will be able to offer you additional savings with your transfer. All you need to do is email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved