When to BUY or SELL Australian Dollars? ( Andrew Bromley )

Australian Dollar Forecast: Why is the AUDGBP Rate Falling?

The Reserve Bank of Australia Monetary Policy meeting minutes were released overnight and indicated the reasons for their recent rate cut. Although the Australian economy is relatively on track with expected performance, it was noted that Chinese growth had slowed, clearly indicating that the performance of their key trading partner is under a watchful eye. The performance of economies associated with Australia – I.E. its trading partners was reported to have improved, largely due to low oil prices providing greater available cash flow. Essentially the minutes concluded that although Monetary Policy was stable, a rate cut was worthwhile. It was also noted that further rate cuts could not be ruled out… The breaking news for this morning is that UK Inflation data came in at ‘Deflation’ levels – a level that will ring alarm bells in the Bank of England – hence why GBP has weakened against the Australian Dollar this morning. I personally feel the Pound will strengthen tomorrow around lunchtime, as very positive sentiment is expected. Therefore if you are buying AUD, it may be worthwhile being ready to exchange at that point. Alternatively, if you’re selling AUD, you may want to move ASAP! If you have an exchange requirement, please feel free to get in touch. Either call the trading line directly (01494 787 474) and quote this blog, or email me AJB@currencies.co.uk