Sterling Finds Support Against the Australian Dollar before Inflation Data (James Lovick)

GBP AUD exchange rates have picked up today with levels breaking 1.65 for this pair. The pound has largely remained under pressure after the Bank of England held interest rates last Thursday and reduced the UK economic growth outlook going forward. This had the direct impact of a fall in the price of sterling across the board including the Australian dollar. The pound has however found a degree of support today.

Selling Australian Dollars?

There is a very good opportunity for selling Australian dollars into pounds at present and those clients with a pending conversion to make would be wise to get in touch to try and maximise on the rates of exchange which are currently available. Rates for selling Australian dollars are currently 10 cents better than they were in May which means a AUD200,000 transfer will currently generate an extra £7000 based on today’s market value. GBP AUD may be at a turning point however and the pound appears considerably more supported after today’s session.

The very recent escalation of tensions between the US and North Korea are also likely to impact on Australian dollar exchange rates. Things would need to worsen further but any change could see a flight to safety to the US dollar away from the perceived riskier currencies like the Australian dollar. We’re not there yet but it is a reason to consider taking the risk out of the exchange particularly for those clients selling Australian dollars and moving into other currencies.

We trade currency for a number of reasons to include property purchase and sale, salaries paid in other currencies, inheritances, emigration or simply moving savings. If you have requirement for any reason then please get in touch to discuss your requirement and the options available to you.

Australian Consumer inflation expectations will be watched tomorrow for clues as to where future monetary policy down under will be heading. Reserve bank of Australia’s Governor Philip Lowe will be speaking on Friday where he may also offer come guidance as to where the Aussie may be heading next.

If you would like further information on Australian dollar Exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

For more news on foreign exchange rates and to request a free no-obligation quote visit www.currencies.co.uk