Sterling vs the Australian Dollar exchange rates have hit a 5 year high overnight after a very low business confidence survey published by the National Australia bank.
NAB one of Australia’s big four banks has called for a rate cut in 2015 as it downgraded its growth outlook and predicts that unemployment down under would rise.
Business confidence in the lowest since mid 2013 and this has caused massive Australian Dollar weakness.
The mining sector which is affected by Chinese demand saw a reading of minus 12 points which is very low and commodity prices have continued to drop to multi-year lows.
The Reserve Bank of Australia will next meet in February and the chances are we could see an interest rate cut which is another reason for the huge weakening of the Australia Dollar recently.
Indeed, the talk from the NAB also adds support to the same view from Goldman Sachs and Deutsche Bank who have also called for an interest rate cut next year.
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