The Pounds to Australian Dollar exchange rate is another currency that decided the pound was a bully boy and deserved a seeing to.

We started the week at 1.8800 and ending the week almost 3% lower, typical for the pound this week.

The reasons behind forex traders buying Australian Dollars was that local data surprised to the up side with a sharp increase in retail spending, strong trade surplus and extremely strong economic growth figures that will reduce the need for the RBA to cut interest rates in Australia.

The RBA has the similar risk though faced by the UK that the Australian Property market continues to overheat but the economy is still not firing on all cylinders.  ( Locals cant afford to buy due to overseas buyers – just like London).

Australian Dollar exchange rate
Australian Dollar exchange rate graph