With RBA minutes due out overnight we may see some Australian Dollar weakness following the announcement. With a feeling that there could be further interest rate cuts later this year if the data shows that rate cuts could come sooner we may see GBPAUD exchange rates move higher. As Chinese demand for Australian goods and services dwindles this has seen the Australian Dollar weakness recently. In theory if interest rates are cut this could then increase Chinese demand again and improve the status of the Australian economy.
The Bank of England minutes are due out on Wednesday and Mark Carney’s recent initiation could see some volatility on GBPAUD exchange rates. Following the recent interest rate decision we saw Sterling weaken very quickly and almost by 2% in the short term so it shows how political announcements can have a noticeable effect on currency exchange. This highlights the need for utilising a currency broker who can keep you up to date with various data coming out.
For more information about how to save money when transferring currency feel free to contact me directly via email Tom Holian [email protected]