Sterling – Australian Dollar exchange rates trading sideways following Bank of England minutes and better U.K unemployment

This morning had the potential to turn rates back on their head again following a fairly good run for the Pound against the Australian Dollar – Solid mention of further Quantitative Easing from the BOE could have weakened the Pound quite a lot and also at exactly the same time we saw unemployment figures for the U.K slightly improve.

Although this has not led to a sharp boost in strength it has opened the door in my opinion for GBP/AUD to move on to the next level and start to head towards 1.60 again in the coming weeks – Of course there is plenty going on that may lead to quite the opposite but I think the following factors should push rates in the rightdirection if you are looknig to buy Australian dollars:

Potential further interest rate cuts in Australia – A rate cut is generally seen as negative for the currency concerned

Chinese economy slowing down

Problems in Europe – If these hit the headlines again they tend to lead to the ‘riskier currencies’ such as the AUD losing strength due to investors attitude to risk dropping.

All in all my opinion remains the same – I don’t see rates flying up but I can see them getting a little better, I feel if we get near 1.60 a limit order to buy at 1.60 would be a sensible move if you have a large sum to send to Australia and have been holding out or you are due to emigrate and will need to get funds over shortly.

If you wish to know how this handy currency tool can help you in an ever moving market then contact me directly djw@currencies.co.uk I deal with clients emigrating or moving back to and from Australia on a daily basis and can get you both fantastic rates of exchange and an extremely efficient level of service – I look forward to hearing from you.