This report will examine the factors that could affect Australian Dollar exchange rates in order to keep you informed should you need to make a AUD currency exchange.
Sterling vs Australian Dollar exchange rates have been volatile to say the least this month. We have seen up to 5% movement during October alone. The discussion of further QE in Europe has seen a big drive to the Aussie Dollar keeping the currency strong vs the Pound. The Chinese have also cut interest rates in an attempt to encourage growth and increase spending. This has also helped to strengthen the Aussie Dollar.
On Wednesday Australian Inflation data is released and with the UK and Eurozone already both below 0% any falls from the 1.7% could signal Australian Dollar weakness so it may be worth taking advantage of rates if the figures come out lower.
Longer term I expect the RBA to cut interest rates to prop up the Australian economy and the inflation data could add further fuel to the fire. My prediction is for Sterling to rise vs the Australian Dollar.