Chinese Interest Rate Cut, Eurozone QE and impact for the Australian Dollar (Tom Holian)

AUDGBP Lower as Sterling Gets a Growth Boost

Sterling Australian Dollar exchange rates have had a mixed month during October and with new PM Malcolm Turnbull having come in recently the AUD has strengthened against the Pound after hitting a 6 year low vs Sterling during summer.

However, with inflation rates falling across the globe in recent times Australia publishes its own inflation levels on Wednesday.

With commodity prices falling to 16 year lows recently and oil prices also very low I think inflation could be lower than the expected 1.7% and this could encourage the RBA to look at cutting interest rates next month.

With the Australian property market still very high and still going up this has meant the RBA has been less likely to change monetary policy but in order to combat falling inflation they could be left with little choice.

The Chinese have again cut interest rates and with further QE expected by the Eurozone in the near future the uncertainty is causing the Australian Dollar to weaken providing some good opportunities to buy Australian Dollars with Sterling.

If you have a currency transfer 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]