As promised here’s a brief update on what’s been happening with the Aussie Dollar over the last week.
Release of the RBA (Reserve Bank of Australia) Monetary Policy Meeting minutes showed a clear shift in emphasis to inflation watch as the policy setting board raised official rates by 25 basis points to 3.25%. The surprise early hike, the first among G20 countries, helped the already buoyant AUD to a new 14 month high last week and with the central bank concerned about missing its 2-3% inflation target the market has been swiftly re-assessing the pace of future increases.
Other releases saw Australia’s terms of trade (receivables from exports compared to payables from imports) fall a further 7% in Q3 following the 15% drop in Q2. Despite the declines the RBA maintains that trade terms are still at very high levels, fuelled largely by Chinese demand for raw materials. As above, CPI (Consumer Price Index) will focus much attention this week along with Business Confidence and New Home Sales.
GBP/AUD movement – High’s & Low’s of last week (19/10/09 – 23/10/09)
A movement of 2.29%
Difference on £200,000
High: 360,400 AUD
Low: 352,340 AUD
Difference of: 8,060 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.