Earlier this morning we have seen the Reserve Bank of Australia cut interest rates by 0.5% to bring rates to 3.75%. The expectation was for rate to be cut by 0.25% but the Central Bank stated that some economic conditions were weaker than predicted and that inflation had fallen slightly in the last couple of months. These comments probably come following news that Chinese demand for Australian raw materials has dropped off and with China one of the major driving forces in the growth of the Australian economy a reduction in demand from one of the fastest growing economies can cause serious weakness for Australia. Going forward Australia will hope that things pick up in China to ensure that they do not feel the same pinch that a number of other major economies currently are.
Following the news that interest rates had been cut by more than expected Sterling has gained close to one percent already this morning presenting some excellent buying opportunities. Sometimes when we see an unexpected economic announcement such as this mornings news we can see a knee jerk reaction which later on reverses. If this happens it could mean the current good opportunities to buy Australian Dollars may not be long lived, so if you need to send money to Australia make sure you speak to one of our experienced currency brokers today. You can call straight through to the trading floor at Foreign Currency Direct plc by calling us free on 0800 328 5884 or email firstname.lastname@example.org