Weekly Currency Update GBP/AUD - Week ending 16th July
Jul 19th 2010, 2:52 am
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Weekly Currency Update GBP/AUD - Week ending 16th July
Hi All,
As promised here’s a brief update on what’s been happening with the Australian Dollar over the last week.
Data highlights from Australia last week were Housing Finance figures (1.9% vs -1.8% exp) and Westpac Consumer Sentiment (11.1% vs -5.7% exp). The surge was the largest ever on record as the RBA indicated they would keep rates on hold in the immediate future and as the Gillard Government reached a deal with the miners over the RSPT. The Aussie got a strong boost early in the week as Alcoa kicked off the US earnings season on a very positive note, upgrading global Aluminium forecasts. This week is again light on the data front with the highlight being the minutes from the RBA’s Board meeting earlier this month. US equities were sold off heavily on Friday night after a slide in the Uni Of Michigan Consumer Sentiment Index (66.5 v 74.1 exp) and disappointing earnings releases from GE, Bank of America and Citigroup. Top line earnings beat expectations but there was a drop in revenues which caused investors to dump these stocks, dragging the major indexes down over 2.5%. On Saturday the Gillard Government announced an election date of 21 August 2010. We do not expect this to affect the direction of the Aussie Dollar in the coming weeks.
Direction for the Aussie this week will once again be dictated by earnings releases from the US and equity market reaction.
GBP/AUD movement – High’s & Low’s of last week (12th July – 16th July)
High’s: 1.7636
Low's: 1.7117
A movement of 3.03%
Difference on £200,000
High: AUD 352,720
Low: AUD 342,340
Difference of: AUD 10,380
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
Mark Bodega
Director - HiFX
As promised here’s a brief update on what’s been happening with the Australian Dollar over the last week.
Data highlights from Australia last week were Housing Finance figures (1.9% vs -1.8% exp) and Westpac Consumer Sentiment (11.1% vs -5.7% exp). The surge was the largest ever on record as the RBA indicated they would keep rates on hold in the immediate future and as the Gillard Government reached a deal with the miners over the RSPT. The Aussie got a strong boost early in the week as Alcoa kicked off the US earnings season on a very positive note, upgrading global Aluminium forecasts. This week is again light on the data front with the highlight being the minutes from the RBA’s Board meeting earlier this month. US equities were sold off heavily on Friday night after a slide in the Uni Of Michigan Consumer Sentiment Index (66.5 v 74.1 exp) and disappointing earnings releases from GE, Bank of America and Citigroup. Top line earnings beat expectations but there was a drop in revenues which caused investors to dump these stocks, dragging the major indexes down over 2.5%. On Saturday the Gillard Government announced an election date of 21 August 2010. We do not expect this to affect the direction of the Aussie Dollar in the coming weeks.
Direction for the Aussie this week will once again be dictated by earnings releases from the US and equity market reaction.
GBP/AUD movement – High’s & Low’s of last week (12th July – 16th July)
High’s: 1.7636
Low's: 1.7117
A movement of 3.03%
Difference on £200,000
High: AUD 352,720
Low: AUD 342,340
Difference of: AUD 10,380
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
Mark Bodega
Director - HiFX
