Events in Australia have always had the greatest sway on GBP/AUD exchange rates during the first week or so of each month. Due to the size of the economy and its population, performance figures are tallied more quickly and released into the marketplace ahead of the UK, with buying Australian Dollar rates shifting as a result.
This website has extensively covered how this recent data caused a total turnaround of 9 cents on GBP/AUD within the space of 10 days as everything that could possibly go right for Australian Dollar buyers emerged in a very short timeframe.
The announcement of deflation led to the quick-fire decision to cut interest rates as a preventative measure. This also coincided with the call for an early election next month which, by itself, would not normally cause much movement in the marketplace, but with the rapidly evolving financial situation in Australia, resulted in what can only be called a panic on the currency markets.
These movements have since slowed, and this is because it is now the UK’s turn to post their performance figures form April, and Australia Dollar buyers should soon be reminded why GBP/AUD fell by 26 cents since the beginning of this year.
Today Industrial Production figures will be released by 9:30am BST and the Pound is already trending slightly lower as a result against the Australian Dollar, Euro, US Dollar and New Zealand Dollar. This lack of confidence stems from the on-going steel crisis in the UK, and news at the end of April of confirmed slower growth in the UK for the first quarter of 2015, slower even than that of the Eurozone.
Tomorrow will also bring one of the most important days on the UK calendar for the month, our own interest rate decision. A cut is not expected, but the UK is having its own issues with low inflation as well. With a new member on the Monetary Policy Committee, it may be that for the first time in 13 months, one of the members will be voting for a rate cut.
Certainly I would not be surprised, since for the past three months not one of the 9 members has voted for a hike with Pound weakness being the result.
With the upcoming Referendum as well, risk has once more begun to outweigh this short interlude of opportunity for Australian Dollar buyers.
I strongly recommend that anyone with a Australian Dollar buying requirement should contact me today on 01494 787 478 and ask the reception team for Joshua in order to discuss the options open to you through a currency exchange specialist to maximise your Australian Dollar return.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels presented after these recent events can actually be fixed in place ahead of any future requirements, allowing you to plan ahead for a purchase even half a year in advance or as little as a few weeks.
Australian Dollar sellers can also get in contact. I firmly believe the current rates of exchange are artificially inflated and what was available only a few weeks ago is much more representative of where GBP/AUD rates should be. Contact me on [email protected] to discuss how to buy at any more attractive levels which emerge later this week as soon as they become available.