This week the Australian dollar has dropped to its lowest levels against the US dollar in a decade and investors fear that this could get worse in the months to come.
|Currency Pair||% Change (Month)||Difference on £200,000|
The latest minutes released by the RBA (Reserve Bank of Australia) hinted that central bankers expect interest rates to fall further throughout the year. Furthermore, the board also hinted that there are other options to stimulate the economy. It was only last year that RBA deputy Governor Guy Debelle stated that quantitative easing could be used, therefore clients that are involved with Australian dollar currency exchanges should keep a close eye on the next move by the Reserve Bank of Australia.
On a more positive note for the Australian dollar, President Donald Trump announced on his Twitter account that a good conversation has been had with the President of China and the conversation will continue at the G20 summit next week. If the leaders of the two largest economies in the world manage to find a common ground this may bode well for the Australian dollar.
It’s been a tough couple of weeks for the Australian dollar. Nevertheless, the Aussie has remained fairly range bound against sterling. Mid-market exchange rates have fluctuated only 2 cents in the last two weeks.
The ongoing Brexit saga is the main concern for sterling. Now that Brexiteer Boris Johnson is the frontrunner to land the top job, the chances of the UK crashing out of the EU without a deal come the end of October have and will continue to increase. For more information on Brexit and pound to Australian dollar exchange rates feel free to contact the trading floor.