Finally Australian dollar buyers have some good news with the rate spiking over 1.90 recently. If you have any transfers to consider buying Australian dollars this is some very much welcome news to take advantage of. In my opinion the pound will come under further pressure in the next few weeks as we approach the Referendum date for the UK.
Why have rates improved? Overnight Australian Inflation data came out worse than expected showing Inflation is falling with the Quarter on Quarter figure showing a deflationary figure of -0.2%. This makes any interest rate cuts more likely as has had a big impact on the Aussie dollar which is much weaker against all currencies on this news. It essentially brings forward any possible interest rate cuts. The pound too is performing very well as more support leans towards the Leave camp in the EU Referendum. Sterling is enjoying a 10 week high on a trade weighted basis which is fueling demand for the currency.
Despite this improvement there is still many weeks of worry ahead with the EU Referendum. The outlook is very uncertain and as a result as we approach the event sterling is likely to come under pressure. If you are buying or selling Australian dollars understanding the market is key to getting the best deal. We are here to help not only with the very best rates of exchange but also assistance with the timing and planning of any currency exchanges.
For more information on a rate comparison and what will move your rate please email me Jonathan on [email protected]