The Australian economy has suffered of late due to several contributing factors. A main factor influencing the health of the Australian economy is a slowdown in Chinese growth. Australia are heavily reliant on China purchasing its goods and services. The US/China trade war is having an impact on Chinese growth and in turn it is hitting the Australian dollar.
|Currency Pair||% Change (Month)||Difference on £200,000|
Until recently it looked like there could be an end in sight to trade wars with reports suggesting talks had been progressing well and it was hopeful there could be a deal in place by the end of the month. Unfortunately, Trump has changed his stance due to his view that talks were not progressing fast enough. He stated on Twitter he intends to more than double current tariffs on the Chinese.
There are also fears about the housing bubbles being created in high wage growth areas such as Melbourne and Sydney.
These concerns had caused the Australian dollar to weaken against sterling last week as rumours circulated that the Reserve Bank of Australia (RBA) could potentially lower interest rates.
The RBA decided to keep interest rates on hold at 1.5%. This boosted Australian dollar value and saw the pound lose some of the gains from last week.
In the build up to the decision the GBP/AUD interbank rate came very close to breaching 1.89, which proved to be a small window of opportunity for Australian dollar buyers.
There are contract options available to make sure you do not miss out on such opportunities. A Limit order allows you to set a target rate of exchange and should that rate of exchange become available 24hrs a day your currency will be automatically purchased. Please do get in touch if this is something of interest.
Following Tuesday’s interest rate decision, the Reserve Bank of Australia (RBA) released their monetary policy statement. This statement provides justification as to current monetary policy and can provide hints to future monetary policy. These statements are watched closely by investors looking to make a fast buck and due to this the statement can cause volatility in the market.
From start to finish with all contacts you feel like a VIP client even if you are exchanging small amount of currency. Always polite cheerful and give you straight talking advice before making the decision. Daniel Johnson and the team are a pleasure to deal with.
Daniel Johnson was very helpful throughout the transaction. It was quick and hassle free. I would definitely use this method again.
Excellent… can’t fault it… Thankyou Daniel.
Daniel Johnson explained clearly and in an easy to understand way what the process would entail before I made the transaction to pay the deposit on an overseas property. The transaction was carried out in an efficient and timely manner and I felt no pressure at any time.