A poor day for the Australian Dollar sees rates flying up almost three cents before settling back down at 2.11. This is mainly due to poor inflation figures being released this morning. Coming in at 1.5% when a healthy economy is meant to be targeting 2% for the year did not stoke much confidence in the AUD.
The governor of the RBA, Glenn Stevens, painted a very morbid picture of the current outlook for the Australian Dollar in meeting minutes released earlier this week. Pointing out that economic growth was below the target trend line and would stay there ‘unless something is done’. Due to the limited powers of the RBA, it is easy to deduce that this could be another hint about a rate cut.
With the downturn in commodity prices, and Australia being an export driven country, the temptation for Stevens to lower the value of the Aussie Dollar has been too much to resist rate cuts and easing on previous occasions. Even the slight hint is enough to push rates further down, and that might be enough to satisfy his short term need.
These comments have created fantastic buying opportunities for the AUD. Email me overnight on [email protected] to discuss how to maximise these movements in your favour and secure your Dollars at a peak rate. Those looking to sell I would advise you to get in touch to discuss your personal timeline on when to make a transfer, so we can figure out what rate may be feasible in your situation.