GBP/AUD July Currency Update
Aug 3rd 2010, 12:13 pm
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GBP/AUD July Currency Update
The Aussie Dollar traded softly in line with the sharp drops on US and European equity markets, as investors worried about the removal of the ECB’s 440bn of 1 year loans to European banks and US consumer confidence fell sharply. Investors fled risky assets en masse and sought the perceived “safe haven” of US treasuries, the Swiss Franc and Japanese Yen. Aussie data did take a back seat to events on the global stage, with weak Building Approvals (-6.6%) and Retail Sales (0.2%) only adding to reason to sell the AUD.
A relatively neutral to upbeat statement from the RBA after leaving rates on hold was the catalyst for what was a stellar mid month for the Aussie Dollar. Glen Stevens and Co stated that they saw inflation reaching the upper levels of the target band over the next year, and perhaps more surprising was that European debt troubles only got a small mention. The Trade Balance figures showed a surplus of 1.12b and the previous number was revised up by almost $1 billion. This result is in line with the RBA’s expectation of large increase in the Terms of Trade for Australia in the immediate future. The Aus Labour market is showing signs that we will most likely reach full employment levels again in the near future. Once again economists were left scratching their heads as both the employment change (+46k v +15.3k exp) and unemployment rate (5.1% v 5.2% exp) were above market expectations. The very strong Aussie economic data, along with solid rises in equity markets all preventing the Dollar from losing significant ground.
Current Central Bank Rates:
Australia (Reserve Bank): 4.50%
UK (Bank of England): 0.50%
GBP/AUD Highs & Lows of July:
High: 1.8145
Low: 1.7054
A movement of:6.4%
Difference this would make on £200k
High: AUD362,900
Low: AUD341,080
A difference of AUD21,820
All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].
Kind regards
Mark Bodega
Director - HiFX
A relatively neutral to upbeat statement from the RBA after leaving rates on hold was the catalyst for what was a stellar mid month for the Aussie Dollar. Glen Stevens and Co stated that they saw inflation reaching the upper levels of the target band over the next year, and perhaps more surprising was that European debt troubles only got a small mention. The Trade Balance figures showed a surplus of 1.12b and the previous number was revised up by almost $1 billion. This result is in line with the RBA’s expectation of large increase in the Terms of Trade for Australia in the immediate future. The Aus Labour market is showing signs that we will most likely reach full employment levels again in the near future. Once again economists were left scratching their heads as both the employment change (+46k v +15.3k exp) and unemployment rate (5.1% v 5.2% exp) were above market expectations. The very strong Aussie economic data, along with solid rises in equity markets all preventing the Dollar from losing significant ground.
Current Central Bank Rates:
Australia (Reserve Bank): 4.50%
UK (Bank of England): 0.50%
GBP/AUD Highs & Lows of July:
High: 1.8145
Low: 1.7054
A movement of:6.4%
Difference this would make on £200k
High: AUD362,900
Low: AUD341,080
A difference of AUD21,820
All of the information above can be explained clearly by your personalised dealer should you open a trading facility with HIFX. To discuss your requirements in more detail and for a free currency consultation please contact HiFX plc on 01753 859 159 or email [email protected].
Kind regards
Mark Bodega
Director - HiFX
