Australian Dollar Strength After Inflation Data (Tom Holian)

AUDGBP Makes Back Some Lost Ground From Last Week

GBPAUD exchange rates have seen a fall overnight following the release of inflation data in Australia.

Inflation fell for the first time in over 2 years with the figure measuring 1.7% for the year.

This is down from the previous reading of 2.3% at the end of the September quarter. This means that there is a small amount of potential to cut interest rates but as inflation is still relatively high the change in policy at next week’s meeting now seems unlikely.

The recent jawboning by the RBA and other senior bankers appears to have taken effect with the exchange rates which have recently been trading either side of 1.90.

Tonight the US Federal Reserve meets to discuss their own interest rates. The chances of them changing policy is practically zero but the rhetoric used shortly afterwards will provide some insight into the future.

Often what happens in the US will affect the Australian Dollar exchange rate.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly. Tom Holian teh@currencies.co.uk