The Australian Dollar has strengthened to its best level against Sterling in weeks in the build up to tonight’s interest rates decision for the Reserve Bank of Australia. Chinese manufacturing data published over the weekend showed that manufacturing activity had increased during January bringing a bit more confidence into the Chinese market and therefore the positive effects for the Australian Dollar.
Although I think the RBA will not now cut interest rates down under I think the statement due shortly after the announcement will be key for the short term movement for the Aussie Dollar. Today’s trading session has seen the Australian Dollar strengthen against the Pound by over 1% making a big difference on a currency transfer and I think this has been priced in to a no interest rate change at tonight’s meeting.
Over the last 2 years there has been a total of 8 interest rate cuts and if this if the end of the cycle this could see short term Australian Dollar strength but I still think there’s room for further cuts coming soon.
The key for 2014 will be the mining industry which if it gets back on its feet this could help the flailing Aussie Dollar but personally I expect this to be a tough year for both China and therefore Australia.
If you have a currency transfer to make and want to save money compared to using a bank then contact me directly Tom Holian [email protected]