With the instability and uncertainty surrounding the Scottish referendum due to take place on September 18th it appears as though global investors have overlooked Sterling recently. The Pound has dropped rapidly against the Australian Dollar dropping by over 10 cents in just 2 months.
The Reserve Bank of Australia last week kept interest rates on hold but as they are at 2.5% compared to the UK at just 0.5% investors are choosing the Australian Dollar for a better yield on their money.
Friday’s news in the US showed that the world’s leading economy created 142,000 new jobs and with the tapering due to end next month the US Dollar has strengthened giving rise to carry traders now looking at riskier currencies again which includes the Australian Dollar.
Sterling has also fallen against the Australian Dollar as the ECB cut their own base rate to just 0.05% which means those that sold the Euro bypassed Sterling and transferred it into the Australian Dollar.
With the next week and a half focused on what may happen in Scotland I think we could see further gains for the AUD against the Pound.
If you have a currency requirement coming up and want to save money on exchange rates compared to using your bank then contact me directly for a free quote Tom Holian [email protected]