Sterling Australian Dollar exchange rates have hit 6 year highs this week following the Chinese intervention with the Yuan and global commodity prices falling to their lowest level in 16 years.
As Australia is a commodity affected currency this saw the AUD weaken vs Sterling and the news from China saw a big sell off for riskier based currencies including the AUD, NZD & ZAR.
Today the Chinese cut its main interest rate by 0.25% to 4.6% in an attempt to calm down global stock indices which have been falling over the last few days.
This has helped to strengthen the AUD against the Pound but this could be just a short term answer for a longer term problem.
The decision to cut rates in China should have happened a while ago and the Yuan intervention was an attempt to sort out the economy but clearly this did little to help and they ended up cutting rates earlier today.
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]