Tuesday morning the Reserve Bank of Australia is set to release their latest minutes. The minutes will indicate why the RBA decided to keep interest rates on hold at 2% and can give indication for future policy decisions.
Last months minutes explained lower interest rates had helped to improve the housing market and also consumer spending which consequently strengthened the Australian Dollar. If the minutes are bullish and there are no hints of future cuts, I expect the Australian Dollar could strengthen.
The Australian economy as a whole has been improving of late. Iron Ore prices have been a talking point for the Australian economy due to being the largest export and in recent times we have seen prices increase by just under 20%!
Last week the European Central Bank had a major impact on commodity currencies such as the Australian Dollar. Investors regularly borrow Euros from the European Central Bank and convert them into Australian Dollars to make money off the Interest.
However it appeared investors weren’t sure if they were coming or going throughout Thursdays trading period. The announcement to cut interest rates coupled with adding additional stimulus led to investors selling off Euro positions and making the conversion into Australian Dollars. However as soon as the President painted a positive picture in the press conference shortly after the trades where reversed and Australian Dollars where sold to buy Euros!
The UK brokerage I work for enables me to achieve clients rates that can save them between 2-4% compared to their bank or brokerage they are already using. I specialise in GBPAUD transfers however if you have Australian Dollars to transfer into a different currency I can still help.
If you are buying or selling Australian Dollars I would recommend getting in touch to put a strategy in place, which will maximise your returns. In order to protect you against market fluctuations we have different contract options available that will meet your needs and requirements.
In addition if you have a currency transfer that is immanent and you want to save money on exchange rates compared to using your own bank or the brokerage you already use then contact me directly for a free quote. Dayle Littlejohn [email protected]. Alternatively if you would prefer to call me, our trading lines open Monday morning at 8.30am UK time, +0044(0)1494 787 478 and ask for Dayle Littlejohn.