Pure FX Blog

11 January 2018

Aussie Hits 9-Week High Versus Pound, as Australian Retail Sales Soar

The Australian dollar to pound interbank exchange rate has reached its highest since November 8th today, at 0.5842, as Australian retail sales rose by +1.2% in November, above forecasts. Image credit: Kym McLeod.

The Australian dollar to pound interbank exchange rate has reached its highest since November 8th today, at 0.5842, as Australian retail sales rose by +1.2% in November, above forecasts. Image credit: Kym McLeod.

by Peter Lavelle

Welcome to Pure FX’s latest update of the Australian dollar to pound interbank exchange rate.

This tells you when it’s a favourable time to exchange Australian dollars to pounds, for your money transfer!

The Aussie continues to climb versus sterling! The Australian dollar to pound interbank exchange rate has hit 0.5842 today, its highest in 9 weeks, or since November 8th.

The Australian dollar has shot up, because Australian retail sales climbed by +1.2% in November, said the Australian Bureau of Statistics today, above predictions for +0.4%.

In particular, sales of electronic goods Down Under soared by +9.3% in November, as Apple released the iPhone X, thereby boosting the Australian dollar.

What’s more, Australian retail sales were boosted by Black Friday in November, as household goods sales jumped by +4.5%, thus lifting the Aussie dollar too.

This has helped the AU dollar, first because it’s thought that Australian shoppers are benefiting from the strong job market Down Under, as well as record low interest rates.

This has also aided the Aussie, because when Australia’s retail sales rocket, this suggests that Australia’s economy will expand strongly in the coming months!

Pound weakens, as EU sends letter to UK industries

Moreover, the Australian dollar to pound interbank exchange rate has also flown higher today, because the EU has sent a letter to key UK industries, warning them about Brexit.

Yesterday, the EU sent a letter to key UK industries including airliners that they “must have a stable and effective establishment in an EU member state,” thereby weighing on the pound.

This lifts the chances that key UK industries will relocate their headquarters to the EU after Brexit, to continue to operate in the Single Market, thus dragging down sterling.

Also, the pound has also lost out this week, as prime minister Theresa May’s cabinet reshuffle, to re-establish Mrs. May’s political authority, has instead highlighted Mrs. May weakness.

Sterling has lost out, as education secretary Justine Greening resigned rather than move to Work and Pensions, pointing to Mrs. May’s shaky grasp on power, ahead of Brexit talks.

With all this in mind, the Australian dollar has reached this 9-week high versus the pound today!

Get a free Australian dollar to pound exchange rate quote

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You’ll get an outstanding Australian dollar to pound exchange rate for your money transfer!

Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email peter.lavelle@purefx.co.uk.

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