Where next for Sterling vs Australian Dollar exchange rates? (Tom Holian)

Australian Dollar Gains a Cent on EUR and USD in a Week

Sterling Australian Dollar exchange rates have had a very mixed month already with the high to low of almost 8 cents which highlights the importance of timing your currency transfer.

The RBA kept interest rates on hold earlier this month as they are still concerned over a rise in the property market in Sydney and an interest rate cut could result in higher property prices in the city which could ultimately lead to a bubble and burst effect.

However, it is more than likely that over the next quarter the RBA will cut interest rates in order to stay competitive.

RBA governor Glenn Stevens has already stated that the Australian Dollar is too strong so to me it is a matter of time before we start to see Sterling rise towards 2 against the AUD.

However, in the short term the focus will be on what happens with Sterling with two major data releases this week.

Beginning on Tuesday UK inflation data is published with the expectation for 1.3%. Anything lower could see see a fall for the Pound.

On Thursday the UK releases Retail Sales which have been good for the past few months so I expect to see Sterling gaining later in the week against the Australian Dollar.

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 teh@currencies.co.uk