GBPAUD exchange rates have had a very interesting period recently as the uncertainty heats up surrounding the UK election and whether or not the RBA will cut rates on Tuesday.
Expectations up until 2 weeks ago were that the RBA is extremely likely to cut rates this month but owing to the fact that Chinese demand has increased recently and that iron ore prices have also gone up the chances are that the RBA may indeed keep interest rates on hold.
My personal opinion is that we’ll see an interest rate cut on Tuesday to 2% in order to keep the economy gong down under and increase the demand for Australian exports. With a weaker AUD this attracts more foreign investment and more demand for their exports.
Over the next few days the UK election takes place on May 7th. At the moment polls are suggesting that no majority party will win and therefore we will be in line for another hung parliament.
When this happened in 2010 we saw Sterling fall across the board so if you have a currency transfer to make it may be worth looking at a forward contract which allows you to fix your exchange rate based on current prices.
For more information on how to save money when buying currency compared to using your bank then contact me directly for a free quote. Tom Holian [email protected]