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 in just 30 days affecting Australian Dollar rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The Pound has once again broken past 1.75 on the Interbank level after Australian inflation data came out lower than expected for the final quarter of 2017. Although inflation rose to 1.9% this was lower than the expectation of 2% and means that the RBA are less likely to be looking at raising interest rates any time soon. One of the problems with inflation is that it is different across the country showing how different things can be geographically in Australia. In Sydney, Canberra and Melbourne inflation was measured at over 2.1% for the year whilst in Perth the figure was just 0.8%. As Perth and the surrounding Western Australia are huge areas where commodities and natural resources come from this is clearly a concern for the overall economy.
The problem for the Reserve Bank of Australia is how it controls the overall economy with the same policy and this is another reason why the Australian Dollar has weakened.
The housing market remains strong in the east but is struggling in the west according to the latest CPI report. This has led to the AUD weakening against Sterling which is good news for anyone looking to buy Australian Dollars at the moment.
Chinese manufacturing data also saw as fall in January and as China is Australia’s largest trading partner any signs of a slowdown in the world’s second largest economy will often weaken the Australian Dollar.
Tomorrow morning brings with it the latest Producer Price Index for Australia which measures the prices by producer of commodities and with the expectation of 1.2% anything different is likely to cause further movement for GBPAUD exchange rates.
Owing to the time difference between here and Australia even though you may not be able to speak with your account manager outside of trading hours it may be worth looking at utilising a Limit Order which allows you to set a pre-determined rate which is automatically triggered if we are able to buy at your desired rate.
For more information on how future data releases could affect your AUD requirement, call our trading floor on 01494 725 353 or email me here.