With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference in AUD you would have achieved when buying £200,000 during the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
Since the beginning of May the Aussie Dollar has strengthened dramatically against the Pound, gaining by as much as 7.5% in value from its high compared to the low earlier this month. In monetary terms, a $200,000 purchase could have cost you as much as an extra £10,000 in recent weeks compared to just a few months ago. Overnight however, we have seen the Pound regain some of its losses against the AUD after Reserve Bank of Australia chief, Philip Lowe, defended lower interest rates in Australia for the time being and made it clear that there will be no rate hikes soon. One of the main reasons the Aussie Dollar has strengthened recently is due to the fact that their base rate is considerably higher than the Eurozone for example, and represents a more attractive proposition for investors.
Philip Lowe’s comments came following Australia’s latest inflation figures which showed the prices of goods had fallen below the RBA’s minimum target of 2%. Lowe did say that he was committed to getting inflation back above their target level, and even hinted at the possibility of further monetary stimulus going forward which may have also lead to the Aussie’s losses.
As a result we have seen a good spike this morning for anyone buying AUD, which may be bolstered further if UK GDP figures this morning fall in line with expectations. Clients of ours can take advantage of this spike through the use of a forward contract, allowing you to lock in today’s price for months in advance by paying a small deposit.
Overnight we have import and export figures for Australia which could also create further volatility, whilst this evening’s interest rate decision in the US could also affect investor appetite to risk which may also impact on the Aussie.
Thank you for reading today’s Australian Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me here.
Superb service. Fast efficient and friendly staff, getting you the best value for your money.
Very straightforward, no hidden charges together with the best exchange rates. Excellent service. Highly recommended.
They always answer the phone straight away, they are very helpful and always call back. They have the best rates.
Brilliant service. One of the best companies ever dealt with. Had time to talk to me and offer great rates too.
Efficient service as always. Excellent customer service, with dedicated dealers who get to know you. Would not hesitate to recommend.