Australian Dollar strength following interest rate cut by RBA – No sign of further easing leads to AUD strength (Daniel Wright)

AUD GBP Steady Above 0.5400 with Melbourne Reopening

The Australian Dollar has had a tough time of things lately, losing a great deal of strength against most major currencies.

This has been mainly due to slower economic data from both Australia and China and also down to the fact that the Government and central bank both appear to be looking to weaken the Australian Dollar as soon as possible.

Last night we saw an interest rate cut by the RBA (Reserve Bank Australia). Usually an interest rate cut is seen as negative for the currency concerned as it makes it less attractive to investors however, in this instance the RBA also made comments suggesting that suggests that their easing is done for now , which actually countered the rate cut (which had already been factored in as it was widely expected) and led to strength for the Australian Dollar.

The rate is still holding up above 1.70 at present for GBP-AUD and I do not by any means think this is the start of the AUD fighting back although it could stop the Pound from gaining too much more in the short term.

If you have a currency transaction to carry out involving either buying or selling the Pound or Australian Dollar and you want to get the very best rates of exchange along with a highly knowledgeable and efficient service then feel free to contact me (Daniel Wright) directly. You can email me on [email protected] with a brief description of your requirements and a contact number and I will be more than happy to get straight back to you.