Hi All,

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

The Aussie Dollar retreated from a seven-year high against Sterling last week as mixed Global economic data cast doubt on the strength of a recovery in the world economy, hurting demand for riskier currencies.

The local Dollar remained under pressure after Australia’s government unveiled its largest deficit on record and forecast a decade of debt in its budget, designed to nurse the economy through recession and keep open the option of an early election. Treasurer Wayne Swan said the global downturn forced the government to write down revenues by AUD23 billion in the current year, its biggest hit to income since the Great Depression, and by AUD210 billion over four years.

The budget forecast the economy to shrink 0.5% in 2009/10 before bouncing back to 2.25% growth in 2010/11, with unemployment to rise 8.25% by June 2010 from 5.4% now.

AUD Movement – High’s & Low’s of last week (11/05/09 – 15/05/09)
High’s: 2.0274 (14/05/09)
Low's: 1.9742 (11/05/09)

Difference on £200,000
High: 405,480 AUD
Low: 394,840 AUD
Difference of: 10,640 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.

A further update will be added next week.

Regards

Jon Sermon
HiFX