Following a brief respite for the Australian Dollar which has significantly weakened over the last two months we have seen GBPAUD exchange rates challenge levels of 1.67 again during today’s trading session. The Reserve Bank of Australia decided to cut interest rates during May and with the UK having avoided a triple dip recession over the same period this is one of the key factors behind Sterling’s gains against the Aussie. With the change of leadership last week and potential rumours of further rate cuts later this year we could see GBPAUD exchange rates improve over the next few months.
The RBA seems concerned that the currency has become too strong during the last twelve months which has hampered their export industry and this could be another reason why the RBA wants to cut interest rates in order to weaken the AUD to make it become more attractive.
A business confidence survey carried out in the UK this morning showed confidence at its highest level since 2007 so again another reason why Sterling could have a further strengthening against the AUD$. If you’re thinking about making a currency transfer and want to ensure you’re getting the best exchange rates feel free to contact me directly Tom Holian [email protected]