Last night the Reserve bank of Australia held interest rates as expected at 2.5% After the decision Glenn Stevens the Central Bank Governor stated that there will now be a period of stability with interest rates and it is looking unlikely that there will be any further rate cuts down under this year.
Recently the pound has been fairly range bound between 1.80 to 1.83 on the main interbank rate. I have been thinking for some time that that should positive data continue to come out of the UK it will surely not be long before the pound starts to try and head back towards the 1.90 level. But now the long term view in Australia could be that interest rates may rise next year at some point and counter any rate hikes in the UK. An interest rate rise in Australia will keep the AUD well supported and continue to remain strong.
If you are looking at buying the AUD in the near term you may want to try and take advantage while the rates are being supported above 1.80. If holding out for nearer to the 1.90 level you may be in for a long wait after last night’s comments.
The next key release for Australia will be all the job numbers due out Wednesday/Thursday. Unemployment is one of the key factors in causing the exchange rate to move one way or the other and with the rate expected to hold steady at 6% the end of the week may just help the AUD to strengthen a little further after a good start to the week.
If you require buying or selling the AUD and would liek more information on teh currency service that we provide please do email myself Ben Amrany at [email protected] I will explain the options available to you in achieving a better rate of exchange than the banks plus you will benefit from our personal service in trying to help you time your transfer.
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