Weekly Currency Update - GBP/AUD Week ending 4th September

[Windsor02]

Hi All,

As promised here’s a brief update on what’s been happening with the Aussie Dollar over the last week.

The AIG (Australian Industry Group’s) Manufacturing Index (51.7) jumped to its highest level in 17 months and broke through the 50 threshold separating contraction from growth. Both production and new orders surged above 50, with firms crediting government stimulus measures for part of the improvement as infrastructure, investment and household spending were all recipients of state sponsored initiatives.
The AIG Service Index (48.0) was less impressive, recording its 16th month of contraction in the last 17, with some uncertainty as to how the sector will survive the possible double hit of rising interest rates and winding down of fiscal stimulus. The overall positive tone was boosted by the Q2 GDP data that showed the economy grew by 0.6% q/q, boosted by household spending and business investment that outweighed weakness in building and international trade. The RBA (Reserve Bank of Australia) left official rates (Interest Rates) at 3% and gave no new clues as to the timing of the inevitable next move up from these historically low levels.
The market is still pricing in at least one rise before yearend. This week Retail Sales, Consumer Confidence and Unemployment will focus attention.

AUD Movement – High’s & Low’s of last week (31/08/09 – 04/09/09)

High’s: 1.9585
Low's: 1.9217

A movement of 1.91%

Difference on £200,000

High: 391,700 AUD
Low: 384,340 AUD

Difference of: 7,360 AUD.

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




Jon Sermon
HiFX