Pound Gains Against Australian Dollar on Global Concerns

currencies

The pound has continued to gain against the Australian dollar this past week - as concerns about the global outlook reduce risk appetite.

This of course is brilliant for people planning to transfer money to Australia. For instance, if you're planning to emigrate or purchase a second home in Australia, it could be worth taking advantage of this superior rate before the market deteriorates. The pound is stronger than it's been against the Australian dollar for months right now.

Peter Lavelle - 07.10.2011.

Hello!

The pound has continued to gain against the Australian dollar this past week in spite of continuing strong economic data from Australia - in large part owing to unease about the global outlook. For instance continuing concerns that Greece could soon default have prompted investors to abandon so-called commodity currencies like the AUD dollar - in favour of safe haven currencies including the US dollar.

Examining Australian economic data though - results continue to be optimistic in contrast to most other industrialised nations.

For instance last month Australia managed its second biggest trade surplus on record - expanding to $3.1bn in August compared to 2.14bn forecasts as demand for Australian commodities in China and India continues to increase.

This suggests that - in spite of economic troubles in the US and Europe - Australia could remain more or less unaffected as huge numbers of Chinese and Indian peoples migrate to cities. Of course the weakening AUD dollar has also contributed to this figure since it makes exports less expensive.

Outside exports retail sales in Australia continued to perform solidly too - managing the second consecutive month of 0.6% growth.

Impact on the Markets

The AUD dollar has lost a tremendous sum against the pound in the last month - and could continue to do so as Eurozone concerns continue to weigh on sentiment. This is of course brilliant for people planning to emigrate and transfer funds to Australia - since it means you can look forward to a much improved exchange rate.

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