The Australian Dollar has gained over 4% recently against Sterling however with the year’s average we at around 1.56 the current level is still relatively high representing fair value for people needing to buy Australian Dollars.
The RBA release their annual statement by Deputy Governor Philip Lowe on Thursday so should he give any hints as to monetary policy and possible interest rate cuts for Australia in the near future we could see some further value for Aussie Dollar buyers with Sterling to exchange.
In the short term China has confirmed that house prices have reached record highs in 4 cities which is encouraging for the world’s 2nd largest economy. With growth continuing in China this could support the Aussie as their growth has a direct impact on their demand for Australian resources which is one of the major factors why the Aussie Dollar has strengthened so much in recent years.
On Tuesday afternoon the US release Non-Farm Payrolls. This is generally seen by most analysts as the biggest news event of the month as it provides an insight into how the US economy is preforming. Personally I feel this will be positive as the results will be for September and therefore will not include the adverse period of the US government shutdown.
For information about saving money when buying Australian Dollars and getting better exchange rates than using your bank feel free to contact me directly via email Tom Holian [email protected]