Despite the AUD losing ground against the US Dollar, it made gains against Sterling following the Bank of England decision to keep interest rates on hold. The table below shows the difference in Australian Dollars you could have achieved when buying £200,000.00 during the high and low points of the last month.

Currency Pair% ChangeDifference on £200,000
GBPAUD3.1%AUD $10,900

AUD strengthens against GBP after UK Interest Rates kept on hold

The Australian Dollar has been under increased pressure of late, falling to the lowest level against the US Dollar since June 2017 earlier this week. The main contributor to these losses has been from investors moving their funds into the safer haven currency of the US Dollar, following the news of Donald Trump’s withdrawal from the Iranian Nuclear deal.

In times of global political uncertainty, investors generally protect their investments by moving funds into the higher yielding and more stable US Dollar, away from riskier currencies such as the Australian Dollar.

However the Aussie made considerable gains against the Pound during yesterday’s trading session, with GBP/AUD rates falling to lows of 1.792, as the Bank of England decided to hold Interest Rates in the UK. Although this was widely expected and mostly attributed to the terrible weather conditions throughout March, Governor Mark Carney did suggest that this was just a ‘temporary soft patch’. However the markets did not react well to this news and provided our well informed clients with another great opportunity to purchase Sterling with Australian Dollars.

The Australian Dollar strengthens against Sterling after UK Interest Rates kept on hold

Australian Home Loans fall in March

In the early hours of this morning, the Australian Bureau of Statistics released Home Loans figures for March, which came out worse than the previous figure of -0.2%, at -2.2%. Housing loans had been relatively buoyant throughout 2017 and early 2018, however this morning’s reading has been taken positively as previously consumer debt had reached concerning levels, and the Australian Dollar has strengthened this morning following this.   

Overnight on Monday evening, Assistant Governor of the Reserve Bank of Australia Guy Debelle will give a speech, closely followed by the release of the RBA’s meeting minutes from the Interest Rate decision two weeks ago where it was decided to keep rates on hold at 1.5%.

Overnight on Monday evening, Assistant Governor of the Reserve Bank of Australia Guy Debelle will give a speech, closely followed by the release of the RBA’s meeting minutes from the Interest Rate decision two weeks ago where it was decided to keep rates on hold at 1.5%.

Governor Philip Lowe has already stated in his statement following the announcement that one of the factors holding the Bank back from raising rates is that wage growth remains so low, therefore further elaboration on this within the minutes released could cause the Australian Dollar to weaken once again.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.