Fed Rate Decision helps to strengthen the Australian Dollar (Tom Holian)

Increase in Risk Appetite Helps Support the Australian Dollar

With Sterling Australian Dollar exchange rates getting close to hitting 2.20 during the middle part of the week the lack of an interest rate hike in the US helped to strengthen the Aussie Dollar vs the Pound.

There was a chance that the Fed could have put rates up but the absence of a rate hike and the comments after the announcement suggested that a rate hike could be pushed back further into the future.

If the Fed had hiked rates this would have seen a sell off for riskier commodity based currencies including the AUD but the non-chnage in monetary policy has seen the AUD gain against the Pound.

On Wednesday the Reserve Bank of Australia will publish their annual report and with the political changes made recently and the global falls in commodity prices I think this could paint the Australian economy in a bleak light.

Therefore, if you need to buy Australian Dollars it may be worth waiting to see what happens with the report on Wednesday morning.

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 teh@currencies.co.uk