Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements just this week affecting GBP/AUD rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
In recent months the Australian Dollar has been performing well against all major currencies and the jigsaw pieces are all coming together which could lead to an interest rate hike within the next 6 months.
Yesterday morning, figures from the Australian Bureau of statistics showed 54,200 jobs had been created up from 27,900 in July, which shocked forecasters as the prediction was for a figure below 40,000.
Couple the jobs figures with inflation pushing past the Reserve Bank of Australia target rate, all eyes will now turn to the Governor Philip Lowe at the next interest rate decision on October 3rd.
Personally I expect the Governor to keep his cards close to his chest as he has made it clear in recent months that further Australian dollar strength could have a negative impact on the economy and the amount of jobs being created.
However my opinion is that if economic data continues to impress for the remainder of the year I expect the RBA will tighten monetary policy in quarter one of 2018. This theory is supported by HSBC, as they have informed their clients that discussions in regards of tightening monetary policy are only going to get louder in the upcoming months.
With UK and EU negotiators appearing to be dragging their feet, a substantial improvement for the pound against the Australian dollar looks unlikely. Nevertheless this week UK inflation numbers coupled with the interest rate decision has pushed GBPAUD exchange rates to the highest levels since the middle of July.
With a planned trip to Australia at the end of the year, my theory is that if GBPAUD reaches 1.70 this will be the time that I buy my Australian dollars as I believe exchange rates will fluctuate between 1.60 and 1.70 up until Christmas. For clients converting GBPAUD or AUDGBP the use of limit orders in a volatile market may be wise.
For more news on upcoming events that could affect your Australian Dollar transfer, call our trading floor on 01494 725 353 or email me at email@example.com.
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