It’s been a volatile week for the Australian dollar against the pound providing opportunity for both buyers and sellers. The Reserve Bank of New Zealand (RBNZ) shocked the markets this week by cutting interest rates by 50 basis points, showing intent that change is needed in a bid to combat a slowing economy.
The Australian dollar was dragged down with the Kiwi dollar as investors second guessed that in the months to come the Reserve Bank of Australia may have to follow suit to stay competitive.
The cuts in interest rates comes as both countries are feeling the heat from the US China trade war. This week US President Donald Trump has announced another 10% tariffs on €300bn of Chinese exports landing on US shores, which are set to come into play at the beginning of September. A potential problem for Australia is that the Chinese Yuan has been dramatically devalued which means Australian exports come under pressure and the price of Iron ore has fallen.
Even though the pound lost value earlier in the week, yesterday the Australian dollar received losses against sterling as the pound devalued across the board. News broke that Boris could call a General election once the Brexit saga is over, come 1st November, however Jeremy Corbyn has stated that he will visit the queen if Boris fails to resign after he loses a vote of no confidence.
Movement may be expected for the GBP/AUD currency pair as Brexit and the trade war is far from over. If you are buying or selling Australian dollar and would like to be kept up to date as developments unfold, you may wish to contact the trading floor.
First rate service from Dayle Littlejohn in dealing with our transaction from Cyprus. He kept us updated at all times and we appreciated his sincere manner.
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.