Sterling Australian Dollar exchange rates hit a 6 year high earlier this week as commodity prices have fallen to a 16 year low and Chinese demand for Australia’s resources has dwindled.
With the RBA minutes due out on Tuesday I think this could include hints of when an interest rate cut may occur down under.
Indeed, I feel that an interest rate cut is necessary for Australia in order to devalue the Aussie Dollar which should in theory help to improve the demand for Australian exports.
However, the RBA has said on many occasions that they are worried about the over-inflated property market and an interest rate cut could send this further out of control.
With Chinese Retail Sales due out tomorrow morning any further signs of a slowdown could weaken the Australian Dollar during the early part of the week against Sterling.
Therefore, if you need to buy Australian Dollars you may wish to wait until the latter part of the week but if selling AUD into Sterling it may be worth moving early in the week.
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]