This year, lending standards in Australia have tightened which has put further strain on the housing market down under. Previously, banks failed to adequately check whether people’s incomes would be able to repay bank loans and now Australian banks are paying the price. You could argue that this is one of the key reasons the Reserve Bank of Australia have no interest in raising interest rates anytime soon.
|Currency Pair||% Change in 1 month||Difference on £200,000|
Going into the New Year, the Banking Royal Commission are set to release further guidance in Q1. House prices in major cities such as Perth have fallen by 15% in the last 4 years. If further tightening is on the horizon this could add pressure to an overinflated housing market. Recent reports by UBS are suggesting the housing bubble could burst if further tightening standards materialise, and house prices could fall by 30% in the major cities.
With the RBA not looking to raise interest rates and the housing market a key concern for Australia, the Australian dollar could have a tough start to 2019. However the pound has problems of its own and I actually feel the question is which currency will weaken more than the other throughout Q1.
The ongoing Brexit saga will be the main talking point in the UK. If Theresa May fails to get her vote through the commons in January I expect she will lose her job which will send the pound tumbling, due to the uncertainty it would cause. If she manages to get the vote passed then you would expect the pound to strengthen considerably against the Australian dollar.
My personal opinion is that she has failed to achieve further concessions from the EU, so it’s unlikely that MPs are going to sign off her deal. Therefore, I expect GBPAUD exchange rates to be lower than they are now come the end of March 2019.
Always a fast and efficient service, a good rate and a simple transfer.
Excellent customer service, very friendly and helpful staff. The process of money transfer is painless. Thank you.
The service was effortless to use and I was kept up to date all the way through the process with courtesy calls and advice from the same contact in the selling of my home abroad and returning the funds back to the UK. I would highly recommend this service to friends and colleagues in the future.
Efficient service and good rates. My currency reached my overseas bank same day!
I find the process to be efficient, uncomplicated, and very good value – the exchange rates used are unbeatable, and the fixed service charge is insignificant when sending a large-ish sum.