Foreign Currency Direct Foreign Currency Direct
Login Register

The Australian people will vote in Government elections on the 18th May and there is rumoured to be a change on the cards from the current Liberal Party to the Labour Party. From an economic perspective the last few years have been poor for Australia.

Currency Pair% Change (Month)Difference on £200,000
GBPAUD1.70%AUD $6,240

Stagnation of wages, low inflation and an estimated half a trillion Aussie dollars wiped of householder wealth as prices tumble. Some may argue it’s hardly surprising that the current Government may do well to find themselves back in power in a few weeks time.

The election, if run today in the polls is considered incredibly close with only one or two seats forming the majority. There is currently a coalition lead by the Liberals that is made up for three parties slightly behind the Labour Party who are leading in the polls.

The main focus for both campaigns is the economy moving forward and how they’re going to stop the current demise. The Reserve Bank of Australia may not be far from chucking their own spanner in the works as talk of interest rate cuts are continuing.

Trade wars a potential negative trigger but US Consumer Confidence remains high

RBA still considering solution

At the start of next week the Reserve Bank of Australia (RBA) will deliver their latest interest rate decision and many expect that they may look at cutting rates. However there is some consideration being given to quantitative easing which is what the Eurozone have been doing for the last few years to prop up the economy.

Either way the RBA will need to act sooner rather than later as pressure mounts. A cut in rates would see the interest rate level fall to record lows which they’re currently already at and arguably all it may do is lead the housing market to become more attractive and not actually encourage borrowing and spending for consumers.

The GBP/AUD interbank rate has remained in the 1.80s for the last two months steadily rising to nearer the 1.85 level. If the RBA were to cut rates in the early hours of Tuesday morning then there could well be a significant movement. If you’re looking to complete a transfer then make sure your trader is aware.     

News

Delay to the US Election Result Sees USD Gain Against GBP and EUR

Global Stock Sell-off Sees GBP Lower Against EUR and USD

GBP falls as the UK looks likely to implement tighter nationwide restrictions to curb the spread of the coronavirus.

By Rob Harold
Sterling Flying as GBP/USD Rate Breaches 2-Year High

Pound to US Dollar Rate Climbs by 6% Through August

GBP ended last week as one of the top currency performers, will sterling's resurgence continue?

By Joseph Wright
Brexit – Deal or No Deal, That is the Question?

Sterling Drops as EU Deem Free Trade Deal “Unlikely”

Sterling exchange rates countinue to fall against the US Dollar and Euro as post-Brexit trade deal looks unlikely.

By Rob Harold
Read more articles

 

Download our monthly currency forecast

Download here

 

D. Wade

UK

It was efficient, felt very secure with the checks made along the line and a very good rate of exchange.

Read our testimonials

S. Poole

Spain

Excellent service. Contacted in the morning transferred funds. My bank in Spain received money the following morning. Brilliant.

Read our testimonials

P. Lawson

UK

We always use foreign currency direct. Completely happy with the service, fast and friendly.

Read our testimonials

M. Cowne

UK

Very good. Very efficient. Excellent rate.

Read our testimonials
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.