Are GBPAUD exchange rates headed for 1.80 this week?

The latest set of Australian GDP data has come in much better than expected with growth for the previous quarter year on year showing 3.4% compared to the consensus of 2.8%.

Typically this news would provide support for the Australian Dollar vs the Pound, but shortly after the Chinese published their latest Services PMI data this morning the data showed a fall. As China is Australia’s largest trading partner this news caused the strengthening in the Australian Dollar to be relatively limited against the Pound.

We have further economic data due out tomorrow morning with the latest Australian Trade Balance data for July as well as both Import and Export data for July.

This data has been rather mixed in recent months and therefore depending what happens with the data overnight we could see a lot of movement for Australian Dollar exchange rates.

Turning the focus to what is happen globally at the moment there is a problem still outstanding between the US and Canada and the talks concerning the NAFTA agreement which remains unresolved.

Canada is a large exporter to the US and the uncertainty owing to the lack of a deal at the moment is causing a loss of confidence in a number of commodity based currencies including the Australian Dollar, which is why I think we could see GBPAUD exchange rates heading towards 1.80 in the very near future.

We end the week with US Non-Farm Payroll data as whatever happens in the world’s leading economy will provide us with evidence as to how well the global economy is performing, which could cause volatility for GBPAUD rates on Friday afternoon so make sure you’re well prepared for a very busy next few days.

If you have a currency transfer involving Australian Dollars and would like to know more about the factors impacting exchange rates, contact me directly for a free quote using [email protected], I look forward to hearing from you.

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