It was announced last night that Australian interest rates were to be kept on hold despite calls for a possible rate cut down under. As a rate cut was partially priced in to the market and has not happened the Australian Dollar (AUD) has strengthened against Sterling still close to the lowest levels we have ever seen against the Aussie dollar. As we did not see a rate cut this month the chance of a cut in rates in April is now quite high and unless there is a surge in positive Australian economic data we could well see a cut in April and in the lead up to that meeting we could see some Australian Dollar weakness as the markets again price in a cut. If you need to buy Australian Dollars then speak to one of our experienced currency brokers today so they can keep you informed of any market movement.
Also announced this morning wa news from Halifax that UK house prices had fallen by 0.5% despite expectations that prices would rise and as a result this has had a negative impact on Sterling exchange rates. As previously mentioned a positive housing market will be imperative for a recovery from the current economic lull the country finds itself in and as such this mornings news does not bode well for the UK and the Pound. Later on today European Gross Domestic Product (GDP) figures are due to be released which will give an indication of how the European economy is performing and expectations are for it to show a contraction in the last quarter of 2011 which could spark talk of recession in Europe. Speak to us today to find out more. 0800 328 5884 / 0044 1494 725353 or email firstname.lastname@example.org