With the recent slowdown in China, some mining companies down under showing lower profits and Australian interest rates cuts this year we have seen the GBPAUD exchange rate improve by 8% since March and my feeling is that the current trend will continue in the short term. The problem that the country faces is that the mining industry is affecting the rest of the country and with such a strong Aussie Dollar it may potentially harm the economy. I think we will see further interest rates cuts towards the end of this year and we could see improved exchange rates from where we are now.
This week we have seen the Bank of England improve growth forecasts which has given Sterling a welcome lift not only against the AUD but also most other currencies. With inflation high and growth forecasts up we can expect to see the Pound gain as high inflation creates an argument to perhaps either keep interest rates on hold or even postpone further Quantitative Easing.
As one of the best performing currencies during recent years it could be time for the Aussie Dollar to start its slip back so keep an eye on what is happening in both China and the UK in order to see what may happen next. If you have a currency requirement to make and would like to use a specialist currency broker to save you money when buying Australian Dollars feel free to contact me directly for a free quote Tom Holian [email protected] Having ten years experience in the fx world I am confident that I can better the rates offered by your bank.