The Australian Dollars strong performance against the Pound in recent times has continued since the turn of the year, with the Sterling to Australian Dollar exchange rate now closer to the 1.60 mark than 1.70 and therefore in the lower end of its current trend. I think that clients with currency requirements involving the Aussie Dollar should look back at historical levels when considering the transfer, as despite the Pound losing so much value over the space of one year, the currency is actually still up against AUD over a five-year period.
This offers a different perspective as the Pound isn’t up against many other major currencies over the same time period.
The Australian economy grew by 1.8% last year and it’s expected to grow by 2.4% this year. The Reserve Bank of Australia is unlikely to amend exchange rates in the short term, their nearest opportunity being this Tuesday, and commodities continue to go from strength to strength which is important for the export driven Australian economy. With this in mind I expect AUD to continue to perform well against the Pound, and I wouldn’t be surprised to see the 1.60 mark tested again soon.
The RBA’s interest rate decision and statement are out in the early hours of tomorrow morning, with a business confidence report out on Thursday at a similar time.
Then on Friday the Australian economy and housing market will be under the spotlight as Home Loans data will be released before the RBA’s Monetary Policy Statement will be heard.
No amendments to the interest rate are expected so Fridays statement is likely to be the week’s key event. If you’re planning a large trade involving AUD this week, it’s worth discussing your options with us in order to plan around these events. Call us on 01494 725 353.
My experience with Foreign Currency Direct has been excellent, and my account Manager Joseph Wright has been First Class. He has provided me with all the information that I needed, in a very clear way, that made it easy to understand.
Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.