The RBA (Reserve Bank of Australia) has stated they are in no rush to cut their interest rate further as investors begin to worry about the future of the Australian economy. Having said that I do feel longer term the conditions that have warranted number one the slowdown in the Australian economy and number two, the rates cuts, will present themselves again in the future. The likelihood of the slowdown in China and the wider region looks set to remain and this will keep in my opinion the Australian dollar on the back foot moving forward. Other currencies are also in process of economic tightening, eg the UK and the US. Whilst neither economy is actually raising rates today, the strong likelihood they will in the future has caused the them to strengthen against the AUD and this trend seems likely to continue in the further as both the UK and the US economies improve and go from strength to strength,
Making firm predictions on a currency pair is impossible but we work very hard to identify the trends and information on the market which might help lead to better rates. There is a growing likelihood the Australian Bank will not be cutting their base rate but this is still a likely outcome longer term. I think therefore if you have Aussies to sell making some plans to buy sterling sooner rather later is the best course of action to avoid disappointment! If buying AUS it might well be worth hanging on but it will depend greatly upon how much you need to move and when.
For more information at no cost or obligation please email Jonathan on [email protected] to get a free update and information on what might be the best course of action in the future.