Sterling ended the week strong against the Australian Dollar following a few comments from leading economists from down under who are suggesting a rate cut is necessary.
Comments from Goldman Sachs, Deutsche bank and Westpac have all called for an interest rate cut next year of between 0.25%-0.5%. The Australian export market has slowed recently owing to a drop in demand from China and if the currency is weakened by an interest rate cut this will likely help to support the Australian economy.
Indeed, the Chinese economy has slowed in recent years and this is one of the key factors in the Australian Dollar weakening.
This week the Bank of England kept interest rates on hold which kept Sterling strong.
Over this weekend the Financial System Inquiry has been published which is aimed at increasing competition in the Australian banking industry. This could impact the Australian Dollar exchange rates over the next few days.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]