Overnight the Aussie dollar weakend against the pound as retail sales came in lower than expected at 0.2% compared to the forecast 0.3%. Interest rates were also held at 4.25% as expected resulting in a drop of just over half a cent. Current rates sit in the 1.54′s with 1.55 being the next key resistance point to breach.
Trade balance is the next key release “down under” and a poor figure could be the one to push the dollar over that 1.55 mark. Following that we have a raft of UK data on Thursday. I feel with the pressure on the dollar from China and there own economy I think we will hit that 1.55 by the end of the week.
Those looking to bring Australian dollars back to the UK might consider trading sooner rather than later as generally the feeling is for a weaker dollar going forward. Those looking to buy, keep in touch to make sure you get the best possible rate for GBP/AUD. As mentioned we have a few data releases coming up which could provide opportunities for buying at best rates this year but of course the markets are unpredictable and can change quickly. Don’t miss out, contact me directly if you would like to be kept informed of rate movements at email@example.com
Pound to US dollar rates held firm over the days trade as the FED economic outlook last night was more upbeat than previous months. As reported yesterday this was expected to give the dollar a boost against the pound but with the UK outlook looking rosier with a string of above forecast data releases recently it has made little ground.
Over the day after sterling initially spiked as European trade opened the rates have slowly trickled down to current levels around 1.57. Trading has ranged within a slim half cent margin all day.
Against the antipodean dollars, Aussie and New Zealand, the pound has gained all day. The 1.5 mark has been reached against the Aussie having been trading in the 1.4′s since January and for the Kiwi we heading up towards 1.94. The main driver against these type of riskier commodity lead currencies is investor sentiment which is lower over worries about European debt. Other commodities like gold and oil are also trading lower, with gold down 3% today alone.
There is a raft of Australian data out overnight which could affect the dollar, coupled with the fact that limit orders for GBPAUD at 1.5 will have been triggered which could mean the rise is short lived. Anyone with an Aussie or Kiwi requirement might be wise to lock in while the rates are still high.