Weekly Currency Update - GBP/AUD Week ending 16th October

[Guest HIFX plc]

Hi All,

 

As promised here’s a brief update on what’s been happening with the Aussie Dollar over the last week.

 

NAB (National Australian Bank) Business Confidence (+14) fell back slightly in September from the previous month but firms remained upbeat about future prospects. The survey was completed before the RBA (Reserve Bank of Australia) hiked interest rates for the first time in 19 months (from 3.00% to 3.25%), with stronger sentiment in construction unable to fully offset the weaker manufacturing, wholesale and retail sectors. Westpac Consumer Sentiment (+1.7% m/m to 121.4) also reflected generally improving conditions as rising shares, an improving labour market and a strong AUD more than offset the prospect of higher interest rates.

 

Last week RBA Governor Stevens again underlined his intention to keep inflation in check as the economy recovers and fuelled expectation that another 50 basis points of increases will be seen by year-end.

 

GBP/AUD movement – High’s & Low’s of last week (12/10/09 – 16/10/09)

 

High’s: 1.7879

Low's: 1.7330

 

A movement of 3.17%

 

Difference on £200,000

 

High: 357,580 AUD

Low: 346,600 AUD

 

Difference of: 10,980 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.

 

Regards

 

 

 

 

Jon Sermon

HiFX