GBP/AUD September Currency Update
Oct 11th 2010, 9:59 am
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GBP/AUD September Currency Update
Sterling is down over 6 cents since the beginning of September. Mid month UK data was dominated by bad news by the house price index, helping toward a three cent drop at the end of the month. The Australian dollar has been swept higher mostly by the increased investor risk appetite and the attraction of a relatively high 4.5% yield.
In the meantime, last month we saw conflicting reports on the state of the UK economy with the IMF giving the Government rare praise for their deficit reduction plan; whereas Adam Posen, a MPC member, spoke of the requirement for more quantitative easing in order for the UK to avoid a Japanese style slump.
In Australia we have seen the sales of new homes fall in Q2 by 2.6%, which is the fourth straight month of falls; however more importantly China PMI rose to a 5-month high at 52.9, the key points was weaker house price data from Rightmove, RBA minutes signalled additional rate hikes boosting the dollar, and Australian job vacancies increased by 9.9%. Therefore there is a strong likelihood that we see the RBA raise rates to 4.75% at the end of the Month.
Current Central Bank Rates:
Australia (Reserve Bank): 4.50%
UK (Bank of England): 0.50%
GBP/AUD Highs & Lows of September:
High: 1.7241
Low: 1. 6203
A movement of: 6.41%
Difference this would make on £200k
High: AUD 344,820
Low: AUD 324,060
A difference of AUD 20,760
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
In the meantime, last month we saw conflicting reports on the state of the UK economy with the IMF giving the Government rare praise for their deficit reduction plan; whereas Adam Posen, a MPC member, spoke of the requirement for more quantitative easing in order for the UK to avoid a Japanese style slump.
In Australia we have seen the sales of new homes fall in Q2 by 2.6%, which is the fourth straight month of falls; however more importantly China PMI rose to a 5-month high at 52.9, the key points was weaker house price data from Rightmove, RBA minutes signalled additional rate hikes boosting the dollar, and Australian job vacancies increased by 9.9%. Therefore there is a strong likelihood that we see the RBA raise rates to 4.75% at the end of the Month.
Current Central Bank Rates:
Australia (Reserve Bank): 4.50%
UK (Bank of England): 0.50%
GBP/AUD Highs & Lows of September:
High: 1.7241
Low: 1. 6203
A movement of: 6.41%
Difference this would make on £200k
High: AUD 344,820
Low: AUD 324,060
A difference of AUD 20,760
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
