The RBA (Reserve Bank of Australia) are scheduled to cut their base rate once more this year, it is not in the Australian economy’s interest for the currency to be too strong! Just when this may happen is unclear but the RBA have actively been targetting a weaker AUD in the hope of boosting exports and stimulating the economy. The crash in commodity prices in recent years has hampered growth in the Australian economy and weakening the currency may help artificially improve the outlook.
There is a growing concern about the extent to which exchange rates will improve for those selling AUD with the UK’s General Election just around the corner. Depending on just how the election pans out we could be seeing some short term GBP weakness presenting an excellent opportunity to buy your pounds. For more information and to be kept up to date with the latest news, please email [email protected]