Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. The report below discusses factors that could affect AUD exchange rates in the near future.
In the early hours of yesterday morning New Governor Philip Lowe from the Reserve Bank of Australia has addressed interest rates and the housing crisis. Mr Lowe has stated interest rates could be cut in the near future which could devalue the Australian Dollar. He went on to say the next inflation report and how the labour market performs will have a major influence on future monetary policy decisions. The Governor has also stated the financial markets were factoring a 50% probability of another rate cut this year.
In regards to the housing crisis he believes it’s not in the best interest for the Australian people that prices continue to rise in the major cities.
The problem I have, if the Governor decides to cut interest rates further this will entice people to try and borrow from the banks due to the lower interest rates. Therefore if more people are applying and are successful for mortgages consequently houses will continue to sell and prices could continue to rise.
The Governor has a tricky period ahead if he wants to cut rates and improve the housing bubble, its essential if you are selling or buying Australian Dollars to keep up to date with the Governors press conference and statements.
If you are selling Australian Dollars in the near future I would recommend getting in touch to discuss a strategy. Since the UK public decided to vote out of the EU GBP/AUD exchange rates have plummeted over 16 cents. If you are trading 200,000 Australian dollars into sterling today compared to June 23rd you will now receive an additional £15,000. Now that the Governor has painted a fairly bleak picture, the spike we have seen since June 23rd may be the spike in the market Australian dollar sellers have been looking for.
Thank you for reading my Australian Dollar currency report, if you have any questions about AUD exchange rates I would be more than happy to discuss them – you can contact me with any queries at firstname.lastname@example.org.
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