This Australian Dollar report will address the factors that are likely to affect exchange rates for the short term if you are buying abroad or making a currency transfer. We have shown in the table below the difference in AUD you would have achieved when buying £200,000 at the high and low points yesterday.
|Currency Pair||% Change||Difference on £200,000|
The Australian dollar has continued to see benefit after the Reserve Bank of Australia (RBA) held interest rates at last weeks’ meeting. The RBA held rates at the record low of 1.5% last week as widely expected. There have been growing concerns as to the health of the housing and labour markets which have previously been echoed by the RBA. However, after last week’s meeting the central bank appeared less concerned stating “growth is expected to increase gradually to a little above 3%”. The change in outlook is lending some support to the dollar.
As far as GBP AUD is concerned the pound has had a very rough ride since the hung parliament on Friday with a 5 cent drop in the exchange rate from the beginning of last week. This downward trend looks set to continue amidst the ongoing British political uncertainty and the dollar may strengthen that little biut further. Those clients selling dollars have been given an excellent but unexpected opportunity which would be worth considering taking advantage of. When the UK political climate improves the pound is likely to recover quickly.
The Australian dollar is also likely to be impacted by events in the US tomorrow. The Fed decision on whether to hike rates will have some bearing on where the Australian dollar goes next. Any rate rise could see funds return from the likes of the Australian dollar back into the US dollar where interest rates are rising. If the Fed continues to hike as per its guidance it won’t be long before interest rates in the US are higher than in Australia. Such action is likely to see the Aussie weaken.
Westpac consumer confidence numbers for June are released in the early hours of tomorrow morning and could see some market reaction. The numbers are viewed as a good barometer for the consumer outlook for the next year reflecting on individual’s finances. Australian unemployment data is released on Thursday morning and a good number should support the view that the central bank will be unlikely to cut rates which could help see the Aussie make gains.
Thank you for reading my AUD report, if you have any questions about exchange rates I would be more than happy to discuss them – you can contact me with any queries here.
I had the money from the sale of our villa in Spain transferred to my bank account in the UK. My contact was James and they handled every aspect of the transfer quickly and efficiently and after agreeing the rate the money was in my uk bank account the same day.
Foreign Currency Direct are simply the best! I have been using them for the last 16 months since buying our home abroad. I regularly need to transfer money into Euros to pay for bills & they always make the transactions very simple & easy to do.
Professional and a first class service, thanks to James and the payment team!
Always quick efficient and good rates and on time with transactions. Brilliant