With a new year beginning, the worlds major currencies will be setting themselves back on track in the trading market, hoping to get 2020 off to a good start. For both the AUD and the GBP, this seems to be the case. The AUD overcame recent downtrends against the USD and erased the losses against it in 2019. Meanwhile, the GBP has entered the New Year on the front foot against the EUR and USD. It has been branded the second best performing major currency of 2019, despite recent uncertainties that have cropped up surrounding Brexit.
AUD Set for Further Gains in the Weeks Ahead
After overcoming its 2019 downtrend, the Australian dollar looks to be on course for accumulating further gains going into the next couple of weeks. Added to this, the AUD managed to erase its 2019 losses against the USD before the closing of the year, leaving the currency in a good position entering 2020. The AUD experienced a 1.3% rise against the USD last week, and made gains by 3.67% for the month of December. This caused the AUD to recoup its 2019 losses against the USD. However, economists are suggesting that it still has some work to do in order to catch up the over performing pound sterling.
AUD Benefits from Economic Data and Lessening of RBA Rate Cuts
The Aussie has also benefitted in the past couple of weeks from positive economic data like the November jobs report. The report saw a lower unemployment rate and the creation of over 30,000 new jobs for the month. This data combined with other releases have lowered the chance of a February interest rate cut from the RBA. This is something that investors are hoping to avoid as it would mean the currency would lose strength as it attempts to boost its economy.
GBP Edges Over EUR and USD Into New Year Despite Brexit Worries Still Lingering
The GBP has placed itself in a good position to enter the New Year, being named the second best-performing currency in 2019. Economists are suggesting that even with December’s manufacturing PMI data, the GBP is unlikely to decouple from its current trading range until the market receives more clarity about the UK’s direction on the trade front. Brexit concerns are still hanging over the GBP as the door has been left open for a no-deal Brexit if the UK government cannot come to an agreement with the EU, but the Conservative government are focused on delivering the deal before the December 2020 hard deadline.
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