This Australian Dollar report update examines the factors that have the potential to effect your AUD transfer over the coming weeks. The table below shows the difference in AUD you would have achieve when buying £200,000 during the high and low points yesterday.
|Currency Pair||% Change||Difference on £200,000|
The Reserve Bank of Australia chose to keep rates unchanged in the wee hours of this morning. The RBA voted to leave rates at the historical lows of 1.5%, marking one year since they last hiked the interest rate. One of the main reasons that they didn’t raise interest rates was partly due to last quarter’s weak inflation reading. Analysts had expected inflation to rise by 0.4% for the quarter of June, however it missed this target and only rose by 0.2%.
The recent surge in the Australian Dollar’s strength (although welcomed by any Australian Dollar sellers) has been a concern for RBA officials Lowe and Debelle. The reason why it is such a concern is that it actually acts a negative for the economy as it affects mining exports.
The dollar has slightly weakened overnight following the news that the RBA have decided to leave interest rates unchanged. What’s more concerning is that the inflation now sits below the target rate of 2–3 % set by the RBA. Although this won’t require additional stimulus just yet, investors may start to look at the AUD ever so slightly. The subsequent speech by Lowe was the main cause for the AUD weakness in my opinion. Lowe added that ‘rate hikes may be off the table for some time’ following a weak dollar and political turmoil in the US. This has in turn caused the AUD to strengthen and as previously mentioned could start to affect the export industry.
For this reason alone I would expect the AUD to continue to act on a downward trend. For any clients looking at selling dollars to buy pounds however, you are still looking at multi year highs. How long this last for remains to be known, however I personally wouldn’t now bet on the dollar strengthening too much more.
Thank you for reading my Australian Dollar report, I would be more than happy to assist with any queries relating to an upcoming currency transfer, please feel free to get in touch here.
First class foreign currency provider, great rates and outstanding customer service.
Great service very professional but with a personal touch. Everything went smoothly with no fuss. Would highly recommend.
It was really refreshing to go through a process that had absolutely no hiccups at all, the service that we were offered exceeded our expectations. We would unreservedly recommend the company to anyone seeking to exchange currency.
Very efficient service. I’ve never used a service like this before & was purchasing a house in France. It was all explained very well & I was kept informed all along the process. Putting a deposit down to pre-book the rate also saved us a fortune.