This Australian Dollar forecast 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 AUD at the low and high levels yesterday.
|Currency Pair||% Change||Difference on £200,000|
The Australian Dollar has been largely supported by a gradual climb in commodity prices with a surge in iron ore prices of which Australia is a major exporter of. However, it has suddenly come under pressure against both the pound and Euro. The positive outlook from European Central Bank President (ECB) Mario Draghi on Tuesday had helped see EUR AUD make gains to a three-week high. GBP AUD also found some support after the Bank of England signalled that the central bank may have to tighten policy in the months to come.
The diary next week is full of Australian economic releases which should make for a volatile period. The Reserve Bank of Australia (RBA) meet on Tuesday to discuss monetary policy. Interest rates down under currently sit at 1.5% after the RBA held rates steady at the last meeting having remained at this level since August 2016. The minutes from the last meeting highlighted that the central bank does not want to cut rates now and risk making asset bubbles any larger than they already are with particular reference to the housing market. As such no change is expected although the accompanying statement could see the Dollar weaken. There are underlying concerns that Australia could be headed for tougher times and it is interesting to see that Australia has also been flagged as having a high debt burden with particular reference to household debt like in the UK.
GBP AUD could see a volatile end to the week as UK politics continue to drive this pair. Market reaction to the Democratic Unionist Party (DUP) and conservative party agreement made on Monday has been somewhat muted. However, the vote in the House of Commons on the Queens Speech today could see considerable market volatility for GBP AUD. If the vote goes through without issues then that could see GBP AUD break through to those recent highs of 1.74 with relative ease, creating some better buying opportunities after the recent slump.
For more information on how future data releases could affect your Australian Dollar requirement, call our trading floor on 01494 725 353 or email me here.
James and his colleagues are always courteous and helpful. I have also never been able to find rates of exchange that are more competitive. I am particularly impressed with the service, as I am not in the habit of transferring massive amounts!
As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.
Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉