After the RBA cut interest rates yesterday to 3.25% as predicted on my recent articles the Pound has seen quite rapid gains against the Australian Dollar moving to 1.57+ the highest level in a few weeks. Although I expected this to happen it has provided a short term opportunity to buy AUD at better rates. Also Australia’s trade deficit figures which came out this morning showed its widest for over three years which has helped Sterling keep its gains high against the AUD. With the uncertainty surrounding the Euro zone in particular with the bailout issues surrounding Spain which is being discussed this weekend.
Further adding fuel to AUD weakness is the news that China is slowing down and one of the RBA’s reasoning behind its interest rate decision was to maintain demand from China. This could provide the RBA with another decision to make as to whether they may cut interest rates again this year. With two more chances I think it’s unlikely as this was the fourth time the RBA has moved the interest rate.
The recent movements for GBPAUD exchange rates has provided the best opportunity since June 2012 so if you have a currency requirement coming up in the short term it may be worth taking advantage of these current spikes. For further information as to ho to save money on your foreign exchange transfers feel free to contact me directly Tom Holian [email protected]
I also welcome feedback and your thoughts about where next for the Australian Dollar exchange rate and the wider economy so feel free to get in touch [email protected]