Foreign Currency Direct Foreign Currency Direct
Open an account

Last night the Reserve Bank of Australia (RBA) chose to once again cut the interest rate in Australia. Before the event in the early hours of the morning a second cut back to back was priced in to 78% by markets according to ING Bank.

Currency Pair% Change (Month)Difference on £200,000
GBPAUD1.98%AUD $7,180

Having previously cut rates at the last central bank meeting there was always a strong chance that a further reduction may be required. The interest level now at 1% is a historic low and makes Australia the 6th lowest rate only 0.25% above the UK.

This morning banks and analysts around the world have been providing their thoughts, with many suggesting that there could be a further cut before the end of the year with some saying it will be 0.5% by 2020. The markets didn’t really respond too much to the cut as it was already priced in.

Trade wars a potential negative trigger but US Consumer Confidence remains high

RBA Governor speech

RBA Governor Philip Lowe will deliver a speech in the next few hours providing his latest thoughts on the interest rate decision. The Australian economy has a unique set of challenges when you consider how many external factors have an impact on the economy.

The truce between the US and China will certainly help to find the AUD a little bit of confidence however no one is overly sure what could come next in the trade war between them. GBP/AUD over the last 9 months has seen the interbank rate at the low 1.70’s with the high just below 1.90, at the moment the interbank level sits directly between those two. The high was more recent than the low, with sterling negativity more likely the reason for the movement in the rate rather than Aussie strength.  

Download our monthly currency forecast

Download here

News

Australian dollar falls as Aussie unemployment rises

Australian dollar falls as Aussie unemployment rises

Concerning unemployment data and wage growth figures weigh on the Australian dollar.

By Daniel Wright
Australian dollar gains as the RBA signals no December cut

Australian dollar gains as the RBA signals no interest rate cut in December

Reserve Bank of Australia signals further rate cuts in 2020, despite promising trade surplus data.

By Daniel Wright
Six weeks from General Election - Labour and Liberal Democrat campaign speaches today

Six weeks from General Election – Labour and Liberal Democrat campaign speaches today

Jeremy Corbyn and Joe Swinson campaign speaches to take place today as party leaders try to chip away Conservative lead in the election polls.

By Ben Small
Read more articles

 

P. Marsh

UK

All the staff I spoke with were helpful ,courteous and knowledgeable. The service is efficient and FCD make the exchange process hassle free.

Read our testimonials

L. Mallet

UK

Personal, attentive. What more can I say? First Rate.

Read our testimonials

M. Clow

Italy

Efficient, friendly, personable – I have used this service several times and will not hesitate to call on them the next time a foreign currency transfer is required.

Read our testimonials

J. Heron

New Zealand

Quick, competent and friendly: a reassuring excellence of service, which I heartily recommend to every potential client.

Read our testimonials
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.