Pound improves against the Australian Dollar
The Pound has seen a small increase vs the Australian Dollar since the weekend after struggling recently.
Last week the latest jobs report highlighted a problem for the Australian economy.
The unemployment figures on the surface appeared to be relatively strong at 5.2% but this is still much lower than that in the US, the UK and also New Zealand.
The hidden figure is that of the under-utilisation rate, which measures the number of unemployed and underemployed as a percentage of the labour force.
This is showing concerns as the figures appear to be rising at the moment. The jobs rate does not demonstrate clearly those who are supplementing their income with second jobs.
This means that the Reserve Bank of Australia will be coming under further pressure to consider bringing forward an interest rate cut.
The RBA are due to release their minutes from the latest meeting tomorrow so make sure you pay close attention to the rhetoric used and to discover their appetite for further rate cuts to be brought forward.
With the global economy showing signs of a slowdown I think it is simply a matter of time before the RBA cuts interest rates again and I think this is in part the reason for the Pound’s recent gains vs the Australian Dollar.
This is providing some good opportunities to buy Australian Dollars with Pounds as the Pound is still feeling the pressure of the Tory leadership election.
At the moment it appears as though the front runner is Boris Johnson and if he does manage to gain power then this could lead to a brief period of certainty for the British economy and this could give the Pound a boost vs the Australian Dollar.
If you would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]