This Australian Dollar report will address the factors that could have an effect on AUD exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past month.
|Currency Pair||% Change||Difference on £200,000|
Overnight the RBA (Reserve Bank Australia) have released their latest Meeting Minutes in which they have stated that they see more positive signs for the economy in 2018 which could be laying the ground for interest rate hikes sooner than expected.
However this has failed to see the Australian Dollar much stronger since more recent positive data had led investors to believe that perhaps the RBA would have been even more positive in their assessments of the situation. A key stumbling block too is the lack of consumer spending which will ultimately be a driver on the economy.
The RBA will need to be cautious in its approach to ensure that it doesn’t unnecessarily derail the economy.
GBPAUD has been close to the best levels since the referendum vote so if you have a transfer buying there could be arguments to consider taking advantage. Even a positive RBA has failed to spark a stronger AUD so the overall favourable levels could remain, particularly with the Pound having found some better news to lay a more solid framework in 2018.
Just lately the Australian Dollar has been stronger against the Pound but this could easily change in the coming weeks if the recent improvements in the Australian economy fail to live up to expectations. GBPAUD rates have been slipping on the latest news which has seen the Pound much weaker against the Australian Dollar. The big news this week is the UK data on Thursday and Friday will be key to GBPAUD movements. Whilst sterling appears better supported overall, the potential for the rates drop to below 1.70 remain high, the Aussie could find further favour too owing to its position as a high yield currency.
The Australian Dollar is majorly influenced by the trends on global events which are key to the direction ahead and in 2018, if you have a transfer to make buying or selling the Australian Dollar against the Pound make sure you are up to date with the latest trends and news. Feel free to get in touch on 01494 725 353 or email me here for more information regarding an upcoming transfer.