The Pound has seen continued to fall against the Australian Dollar this month and we are now at the lowest level to buy Australian Dollars since summer 2013. This 3 year low is great news for anyone looking to sell AUD to buy Sterling but not so if you’re looking to transfer funds down under.
The demand for Australian property by Chinese investors has continued to rise in spite of some banks trying to crack down on foreign property buyers. According to HSBC the bank’s lending to foreigners was ‘steady’ after a brief slowdown earlier this year. With the Reserve Bank of Australia having cut interest rates earlier this year this has continued to fuel the demand for property and as the foreign investment continues this is likely to strengthen the Australian Dollar against the Pound.
The Australian Dollar is also remaining strong owing to the interest rate which is attracting global investors. At 1.5% this is clearly more attractive than interest rates on offer in the UK, Eurozone or US and with no signs that the RBA will cut interest rates at next month’s meeting this is another reason why the Australian Dollar could drop even further.
The Pound remains at risk of further falls owing to negative sentiment and with the UK looking to cut interest rates further at their next meeting we could see rates drop owing to the uncertain political landscape in the UK. GBP/AUD exchange rates yesterday fell into the 1.60 levels and I would not be surprised to see it break lower during the course of this week.
Chinese Import and Export data for September is due to be released overnight and any signs of positive data could see GBP/AUD rates drop below 1.60 for the first time since July 2013 so if you’re considering buying Australian Dollars it may be worth organising this prior to the announcement.
Call our trading floor on 01494 725 353 if you have an AUD buying or selling requirement and would like to know how future releases could impact your requirements.
As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.
Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.
Brilliant service, genuine advice and rapid transfer of money to our French bank account. Tom Holian seems like a friend although we’ve never met!