The exchange rate for GBPAUD$ has risen by 1% this morning following the surprise announcement by the RBA to slash the interest rate by 50 basis points. As you may have read yesterday the consensus expectation was for a 0.25% cut so the market was a little shocked by the decision and the rate for buying Australian Dollars has hit 1.5728. This is a 5 month high for Sterling vs Australian Dollar making it a very attractive time to transfer Australian Dollars. Weaker than expected UK PMI data has come out but the rate cut overshadowed the news. However, all it not necessarily rosy for the Pound as Australia still has a very attractive interest rate of 3.7% the highest interest rate amongst the major currencies so for those looking for a strong yield the Aussie Dollar is still a good option.
Also out today was the House Price Index which showed a fall year or year of 4.5% compared to the anticipated 3.9% another reason why Sterling is so high against the AUD. Tomorrow morning in the UK sees the release of the Halifax House Price Index which if positive could see GBPAUD increase towards the next resistance level of 1.58 so if you need to send Australian Dollars please consult your currency broker to discuss the available options to ensure you are offered competitive exchange rates. The UK also releases official figures for UK Mortgage Approvals due at 930am tomorrow so keep a close eye on the markets. With the economy down under appearing to cool in some sectors exchange rates for GBPAUD could test the 1.60 territory during this quarter.
For more information feel free to call me Tom Holian 01494-787478 quoting ‘Australian Dollar Forecast’ for preferential exchange rates for transferring Australian Dollars or any other major currency pair.