This Australian Dollar report will address the factors that could have an effect on Aussie exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during trading hours on Friday.
|Currency Pair||% Change||Difference on £200,000|
Sterling has struggled against the majority of major currencies, but the Aussie dollar is the exception. Australian dollar sellers should be concerned.
The housing bubble in Melbourne and Sydney is also cause for concern. Foreign investors are prepared to pay over inflated prices as an investment which is causing high wage growth areas property to become too expensive to warrant the rewards. The Reserve Bank of Australia have indicated that rates will be on hold for the foreseeable future. The Australian dollar has suffered as a result. There is a high probability of a rate hike in the US in December and this is not good news for the Aussie. The Australian dollar is a place of choice for investors due to the relatively high return. If the US raise rates they will be at the same rate as Australia and with the USD considered as a safe haven investors will no doubt flood out of the Aussie to the greenback.
If you are an Australian Dollar seller, purchasing Sterling it may be a good move to take advantage of current levels despite the political uncertainty in the UK and the lack of clarity on Brexit negotiations.
Tomorrow in the early hours is the Reserve Bank of Australia minutes. They are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view. They also record the votes of the individual members of the Committee. This can give a hint to future monetary policy so can influence Australian Dollar value.
Thank you for reading today's Australian Dollar report, if you have any questions about Euro exchange rates I would be more than happy to discuss them – you can contact me with any queries on 01494 725 355, or by sending an email to firstname.lastname@example.org.