This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low during the past fortnight.
|Currency Pair||% Change||Difference on £200,000|
This morning the Reserve Bank of Australia chose to keep interest rates on hold at 1.5%. This was expected to be the case as previously comments from RBA members suggested a hike wasn’t being considered till the end of 2018 at best.
The decision was followed by a speech from RBA Governor Philip Lowe.
Last week before the Bank of England interest rate decision the Sterling Aussie level rose to 1.73 which was the first time it reached that level since early June. Now that the dust has settled from the end of last week Sterling gathered momentum yesterday with the level moving back above 1.71.
Now that trade talks look set to begin in the Brexit negotiations, Sterling could well receive a further boost as the uncertainty may start to wear off. Before the end of the year I think we could see the GBP/AUD rate back above 1.75 which will be an exceptional opportunity for Aussie buyers to capitalise on rates.
If you’re looking to purchase Australian Dollars with Sterling you could find yourself moving towards a multi-month high this week. Alternatively, if you’re looking to sell AUD then now may be the time to make sure you don’t miss out on the lows. Whilst the rate has moved away from the 1.60 lows, it may be that a rate below 1.75 might soon become the target level. At the moment this is very achievable however the outlook doesn’t look favourable for you.
If you’re looking to trade Australian Dollars using our rate alert service will make sure whichever currency you’re selling you’ll be trading at the right time. Contact your broker so they can set an alert for you. Feel free to get in touch for more information on rate alerts and how they can benefit you on 01494 725 353 or email me here.