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Weekly Currency Update - GBP/AUD Week ending 14th August
As promised here’s a brief update on what’s been happening with the Aussie Dollar over the last week.
GBP/AUD slumped to a 13-year low against last week with the Aussie buoyed against a broadly weaker Sterling by hawkish comments on interest rates from the governor of Australia’s Central Bank. Glenn Stevens, RBA chief, lifted speculation of rate hikes to come after saying the current rate of 3.00% was an emergency measure and normal levels would be a “good deal north” of this.
The Central Bank slashed Australian interest rates to record low as it moved to cushion the economy from the global financial crisis, but recent strong data has prompted its easing bias, setting the stage for eventual rate rises. This was highlighted after Australian consumer confidence climbed for a third month in August to a near two-year high and demand for domestic home loans rose for a ninth straight month in June last week.
In Australia, a thin data calendar will give way to Tuesday’s RBA minutes of the August board meeting, expected to give some insight into when we might see some monetary tightening.
In the UK, recent Unemployment figures showed a 13 year high which had a negative effect on the Pound as they suggest that the deterioration in the labour market is yet to show signs of stabilisation.
AUD Movement – High’s & Low’s of last week (10/08/09 –14/08/09)
A movement of 2.47%
Difference on £200,000
High: 401,360 AUD
Low: 391,680 AUD
Difference of: 9,680 AUD.
Whilst FX 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.