With the pound starting to move in the right direction against the Australian Dollar we are currently trading at 3 month high. The recent cut in interest rates looks to be the main factor why the Aussie Dollar has weakened. Having said this it looked at one stage last week taht this would not be enough to halt the strength of the Dollar.
Looking forward there are analysts that feel the RBA will look at cutting rates again next month and this could enable the pound to move up to the late 1.50’s maybe hit 1.60. This would be a welcomed boost for all of you that have been holding out for the rate to rise. If you are selling AUD I would be cautious as you do not want the losses to continue as the RBA would like a weaker currency. If however the AUD performs like it has in the past then even another rate cut may not be enough to significantly weaken the dollar by 3-4% Certainly interesting times ahead for the currency pair.
Data is a little thin on the ground this week down under but Wednesday there is a lot of data out for the UK which could cause the rate to move one way or the other. If you have a currency conversion to make over the coming weeks then please do conatct me at [email protected] and I can explain the options that are available to you plus I can explain how we can beat the rates your bank offers you.
Thank you for reading and I look forward to hearing from you.