This Australian Dollar report will address the factors that could have an effect on upcoming transfers in the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing AUD at the low and high levels during the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The Reserve Bank of Australia has decided to keep interest rates on hold which has helped the Pound to make some small gains vs the Aussie. Tomorrow morning the RBA will release the latest set of minutes and if we see any potential appetite of an interest rate hike in the future then I think this could see the Pound losing the gains it has made this week. The RBA are currently in a tricky situation when it comes to interest rates and clearly with an overinflated property market in Australia an interest rate hike could be the key to slowing the pace down of the housing market. However, at the same time an interest rate hike could cause the AUD to strengthen too much causing an issue longer term for Australian exports particularly with China.
We also see the release of Australian Retail Sales overnight for the month of June. The expectation is for 0.2% so anything different is likely to cause movement for GBPAUD exchange rates.
Later today with the focus mainly on what is happening in the UK I think the overall tone used will be rather cautious and potentially negative and therefore this is part of the reason why I think the Pound will struggle during today against the Australian Dollar.
With inflation in the UK going lower as well as the Brexit uncertainty the comments made by BoE governor Mark Carney will be crucial as to what will happen to Sterling vs the Australian Dollar.
Owing to the time difference between her and Australia even though you may not be able to speak with your account manager outside of trading hours it may be worth looking at utilising a Limit Order which allows you to set a pre-determined rate which is automatically triggered if we are able to buy at your desired rate. This is particular useful when markets can move quickly outside trading hours especially with the RBA minutes due out overnight.
Thank you for reading my Australian Dollar currency report, if you have any questions about exchange rates I would be more than happy to discuss them – you can contact me with any queries here.
As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.
Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.
Brilliant service, genuine advice and rapid transfer of money to our French bank account. Tom Holian seems like a friend although we’ve never met!