Australian interest rates were kept on hold yesterday although the minutes proved rather dovish. Fears are for economic growth and less concern is being placed on inflation. Australia also showed a trade deficit of AUD$480mn against expectation. GBPAUD exchange rate is now expected by many to hit 1.55 over the next few days. The next meeting we could see an interest rate cut in May even though rates were kept on hold. This has made the country less attractive to international investors and put pressure on the AUD against the USD and Sterling.
The US FOMC minutes published last night showed that they are moving away from added monetary stimulus. Moving forward this could see further strengthening for the USD vs AUD so if you need to move currency between Australia and the UK or US then feel free to ask me a question about the process of obtaining competitive exchange rates when transferring currency. Tom Holian [email protected]