Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker.
The Pound has seen some notable gains over the last month since hitting the best rate to sell Australian Dollars into Sterling since Autumn 2013. The fallout from the Brexit vote caused a big improvement in commodity based currencies against Sterling but longer term I think we’ll see Sterling gaining vs the Australian Dollar. Chinese inflation data published on Friday morning caused the AUD to weaken against the Pound by over 2 cents during the course of the session.
As Australia’s biggest trading partner anything that happens in China will often have a big effect in the strength or in this case the weakness of the Australian Dollar.
With the RBA having cut interest rates not long ago this is causing problems for the housing market down under. In a recent interview outgoing RBA governor has said he has ‘some discomfort’ about the rising house prices in Sydney and any cutting of interest rates could exacerbate the problem.
Having governed the Australian economy for the last decade Stevens will leave his role at the end of the week and incoming governor Lowe could be in for an interesting period. Stevens has recently acknowledged that many central banks have engaged in a ‘currency war’ in order to make their exports more competitive. Indeed, with China showing signs of slowing down this could put some pressure on the RBA to act at next month’s meeting.
Current deputy Philip Lowe will come in on September 17th and has been appointed for a seven year term whilst current assistant governor Guy Debelle will come in as deputy.
If you need to exchange Australian Dollars to buy Sterling in the near future it may be worth organising this a week prior to the change in governor. Call us on 01494 725 353 to discuss your requirements further.
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!