Weekly Currency Update GBP/AUD
Here’s an update of what’s been happening in the Currency Markets over the last week.
AUD initially dipped to a one-week low last Wednesday with Sterling weighed by a grim Q1 GDP reading and the Aussie buoyed by firmer than expected Australian retail sales.
Sales jumped by 1.0% in May, twice the market forecast, as government give-aways and historically low borrowing costs fuelled spending on the high street. However, the local Dollar eased broadly on Thursday as appetite for higher-yielding currencies and riskier assets waned following a bleaker than expected US jobs report. Aussie losses were compounded after Australia’s trade deficit doubled in May as a steep fall in the value of commodity exports overshadowed soft imports. likely just a taster of things to come as swinging price cuts for coal and iron ore feed through.
The markets inability to sustain a move beneath the psychological 2.0000 level suggests the current bear trend is running out of steam. Whilst above this level, it can be argued that a broad range still persists here, with initial gains readable towards 2.0750 and 2.0900 thereafter.
However, our favoured view is for a resumption of the longer term downtrend, targeting the previous 1996 low at 1.8725 before any major reversal higher is seen. Australian data this week includes employment and housing finance figures, both important in Central Bank thinking going into the second half of the year.
AUD Movement – High’s & Low’s of last week (29/06/09 –03/07/09)
A movement of 1.77%
Difference on £200,000
High: 413,760 AUD
Low: 406,560 AUD
Difference of: 7,200 AUD
Whilst FX certainly isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
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