Sterling Australian Dollar exchange rates have picked up at the start of the week as Chinese data published over the weekend has been much worse than expected.
Chinese Retail Sales and Industrial production figures revealed the lowest levels since 2008 and exports for China also fell by over 25% last month compared to the 12 months before.
The Reserve Bank of Australia release their minutes from this month’s meeting tomorrow and this could cause further volatility if the RBA mention that they may look at cutting interest rates at some point in the future.
Commodity prices have seen a big fightback during March so any rate cut in the near future looks unnecessary but in the long term as the economy is not well balanced down under I think we’ll see an interest rate cut.
This week the UK releases its Budget Statement, which will be Osborne’s 8th, and although he has mentioned he will be looking to cut 50p in every £100 this is unlikely to cause too much volatility. The aim is to cut the deficit to zero by 2020 and this cut could be the £4bn he is looking for.
This week I expect Sterling to have a small rally vs the Australian Dollar so if you need to buy AUD with Sterling this may be good news for you.
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]