Sterling Australian Dollar exchange rates have held firm today with the absence of any important economic data announcements.
However, overnight the RBA minutes are due and this could see further AUD weakness if there is any mention of another interest rate cut down under.
Since the UK election Sterling has gained more than 4 cents against the Australian Dollar or the difference of £2,100 on a currency transfer of AUD$200,000.
The RBA is rather torn as to when they may cut rates in order to stimulate more investment in Australia.
A rate cut would see AUD weakness so tonight’s minutes could provide us with some further volatility for GBPAUD exchange rates.
Indeed, RBA deputy governor Philip Lowe suggested recently that ‘we have scope to lower interest rates if we need to.’
Therefore, I think it is only a matter of time before we see another rate cut which could weaken the Aussie in the longer term.
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 [email protected]