Year-round sunshine, stunning beaches, laid-back lifestyle. It’s easy to see why more than 1.2 million UK citizens call Australia home. With a shared language and culture, despite being almost 9000 miles way, makes the adjustment to Australia that much easier. But how easy is it to move to Australia?
A prevailing risk-off mood through last week weighed on AUD exchange rates as growth concerns in China – a key trading partner with Australia – dented risk appetite.
Power outages halted Chinese factory production amid energy shortages, while the Evergrande crisis threatens to spark an equity market selloff as the property giant struggles to make debt repayments.
September’s Chinese manufacturing PMIs for September also dragged on market mood as activity in the sector stagnated.
Australia’s own PMI data failed to provide the ‘Aussie’ with significant support. Manufacturing growth was below forecast, although it showed expansion, while the service sector remained in a state of contraction with a better-than-expected reading.
Instead, the Australian dollar has found renewed support as market sentiment improved and strengthened the risk-sensitive ‘Aussie’.
The latest Reserve Bank of Australia’s interest rate decision failed to drive AUD movement as the central bank kept monetary policy unchanged as expected.
After Australia’s better-than-expected trade balance increased to a record high in August, AUD exchange rates could receive a boost on the country’s improving economic outlook.
More services PMI data released midweek could trigger movement in the Australian dollar, with forecasts of a small contraction in sector in September but improved on August’s data.
Meanwhile, the ‘Aussie’ will remain sensitive to global market mood driven by developments in China, political deadlock on the US debt ceiling, and the global energy crisis.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)