Strong oil prices offer the Australian Dollar a welcome boost, where to next for AUD exchange rates?

The Australian Dollar has been supported overnight, which will be a welcome relief for those hoping for a stronger Aussie Dollar as the AUD/USD pair hit an 11-month low just yesterday.

AUD exchange rates have been struggling this year as the global economy picks up and monetary policy around the world tightens. Now that the US Dollar offers a higher rate of return investors are keen to hold funds in USD as opposed to the AUD as not only do they get a better rate of return, but the USD is considered more of a safe haven currency.

GBP/AUD hit a post-Brexit vote high recently trading in the 1.85’s, although it’s since slipped from these levels and has fallen further overnight owing to AUD strength as stock prices rose and the value of oil is rising. With the Australian economy being export driven and dependent on trade with it’s nearby neighbors, this is a positive so AUD understandably gained off the back of it.

There could be a lot of movement for the Aussie Dollar against the Pound today, as there is a Bank of England meeting at midday. Although no interest change is expected, I think we could see movement if any further amendments are alluded to.

There aren’t any major data releases out of Australia before the weekend, but if you wish to discuss what events could influence the Aussie Dollars value over the next few weeks do feel free to register your interest.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

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