Following the MPC minutes released on Wednesday whereby there was a 6-3 vote for QE in the UK we have seen Sterling test historic lows against the Australian Dollar this week. Bank of England Governor Mervyn King was one of the main supporters of QE and whenever this is announced it tends to weaken the Pound. With UK GDP figures for the last quarter in negative growth many analysts are anticipating an export led recovery. Indeed, Sterling is at the lowest level since 2011 against a basket of currencies.
GBPAUD exchange rates have traded between 1.47-1.48 today which makes it a fantastic time to be transferring Australian Dollars into Sterling so if you have a requirement to sell Aussie Dollars it may be worth considering doing so in the near future. For more information about how to save money on foreign exchange contact Tom Holian [email protected]
The RBA earlier this month kept interest rates on hold as expected but if exchange rates continue to remain as strong as they are this will surely cause a big divide within the country between the booming mining sector and the rest of the country. The problem is that away from Western Australia the rest of the country is being adversely affected by the strong Aussie and if this continues this could cause long term problems for the Australian economy as a whole.
If you are in Australia and has been affected by exchange rates then get in touch Tom Holian [email protected]