Weekly Currency Update - GBP/AUD Week ending 9th October
As promised here’s a brief update on what’s been happening with the Aussie Dollar over the last week.
The biggest news of last week was the decision by the RBA (Reserve Bank of Australia) to hike rates by 25 basis points (3.25%). The increase, though well flagged by RBA Governor Stevens, surprised the market and propelled the AUD to a weekly high of 0.9090, a level not seen since August 2008. The early move to start to ‘normalise’ monetary policy is the first among the G20 countries and looks to be the first of a series of increases that will see rates back to 4.50 by mid-2010. The RBA decision was vindicated by the subsequent release of employment data that showed full-time employment growing by 35,400, reversing a 30,800 fall the previous month, and the Unemployment Rate dropping to 5.7% from 5.8%.
This week Business and Consumer Confidence releases will be watched for continuing improvement, however the surveys will not reflect last week’s hike in official interest rates but future releases will show how robust confidence is in the face of a tightening monetary policy environment.
GBP/AUD movement – High’s & Low’s of last week (05/10/09 – 09/10/09)
A movement of 5.20%
Difference on £200,000
High: 368,560 AUD
Low: 350,340 AUD
Difference of: 18,220 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.