The Reserve Bank of Australia (RBA) kept their base interest rate on hold overnight, at 2.5%. Whilst this result was widely anticipated, an indication by the RBA governor that the AUD was ‘uncomfortably high’ was not. This statement will certainly not go unnoticed by investors, as the RBA are basically saying they will not be concerned if the AUD loses further value against its major counterparts.
This news coupled with positive UK PMI Service data, has pushed GBP/AUD rates back towards 1.69. Personally I think it is likely we will see Sterling break 1.70 over the coming days and I do feel there is scope for the AUD to lose further value. It is worth noting that although we have lost over 20 cents on GBP/AUD from the high at the beginning of the year, rates are still very attractive for those selling AUD when you look at the history of the currency.
If you do have an upcoming GBP or AUD currency transfer to make and would like to discuss the current market developments and forecasts, or simply want to compare our rates with your current provider, then please feel free to contact me directly at [email protected]. Alternatively you can call one of our experienced brokers today on 0044 1494 787 478.