The following report looks at factors that may impact the Aussie Dollar in the coming days and weeks, such as the Interest rate decision.
The minutes from the Reserve Bank of Australia’s most recent meeting on July 7th will be released overnight tonight, which will give markets an insight into their mind-set as the global economy enters an uncertain period following the Brexit announcement.
Earlier in the month the central bank left interest rates on hold at 1.75%, citing decent economic growth despite low inflation as the key reason for doing so. But Australian Dollar buyers may see some opportunities further down the line, as they made a point in the press conference afterwards that the door was still open for looser policy.
The decision not to cut rates was taken following the inconclusive result of the previous weekend’s elections. To avoid causing too much of a stir, they may be looking to August now to conduct the expected cut.
The minutes will detail what conditions will need to be met for a rate cut at their next meeting to be likely, if these seem well within the bounds of reality, we may see the Dollar begin to weaken ahead of time.
One of the conditions will likely be low inflation, and the next figures for these will be released on July 27th. But with low inflation being persistent in Australia, particularly since this is the middle of their winter and well away from the beneficial effects of the tourist season, it seems more likely than not that there will be a rate cut next month.
With some opportunities presenting themselves soon for Australian Dollar buyers, and still significant uncertainty with the Brexit still in effect, I recommend contacting your account manager here to discuss your requirements, so that any favourable opportunities can be relayed with immediate effect.
Call us on 01494 725 353 to discuss your options regarding a currency transfer, we are open until 6pm today!
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