Interest Rate Cut 5.5.15 (Daniel Johnson)

AUDGBP Bounces After Setting Lows for the Year

Chinese stimulus has been announced this month which has caused some strength in AUD, this coupled with slightly higher inflation figures have caused some analysts to change their view on a rate hike on 5th May.

Personally I feel the Australian Dollar gains against Sterling will be short lived, I think an Interest rate cut from the RBA is still on the cards, there is definitely need for stimulus in the Australian economy with non-mining business investment way down.  Raw material export has to remain cheap in order for them to still seem attractive to the Chinese.

Hang on until the 5th if you are an AUD buyer, but if there is no movement I would advise moving quickly to avoid the volatility expected from the UK general election.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at [email protected] or call on 01494 787 478 and ask for Daniel Johnson.