Weekly Currency Update GBP/AUD - Week ending 9th July
Jul 13th 2010, 8:20 am
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Weekly Currency Update GBP/AUD - Week ending 9th July
As promised here’s a brief update on what’s been happening with the Australian Dollar over the last week.
A relatively neutral to upbeat statement from the RBA after leaving rates on hold last Tuesday was the catalyst for what was a stellar week 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 and unemployment rate were above market expectations.
The very strong Aussie economic data, along with solid rises in equity markets saw the risk trade back on in a big way and the local currency got a huge boost, rising close to 5 big figures last week. Local data this week is on the light side as we get an insight into business and consumer confidence and housing finance.
GBP/AUD movement – High’s & Low’s of last week (5th July – 9th July)
High’s: 1.8145
Low's: 1.7141
A movement of 5.86%
Difference on £200,000
High: AUD 362,900
Low: AUD 342,940
Difference of: AUD 19,960
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
A relatively neutral to upbeat statement from the RBA after leaving rates on hold last Tuesday was the catalyst for what was a stellar week 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 and unemployment rate were above market expectations.
The very strong Aussie economic data, along with solid rises in equity markets saw the risk trade back on in a big way and the local currency got a huge boost, rising close to 5 big figures last week. Local data this week is on the light side as we get an insight into business and consumer confidence and housing finance.
GBP/AUD movement – High’s & Low’s of last week (5th July – 9th July)
High’s: 1.8145
Low's: 1.7141
A movement of 5.86%
Difference on £200,000
High: AUD 362,900
Low: AUD 342,940
Difference of: AUD 19,960
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
