Sterling vs Australian Dollar exchange rates have continued to rise this week following last week’s interest rate cut by the Reserve Bank of Australia.
In my previous articles I have been writing for a long time that the RBA needed to cut interest rates to re-balance the economy and with the rate cut taking place this cause Sterling to move upwards vs the Australian Dollar.
Indeed, there is also a chance that we could see another rate cut in the future depending on how this recent policy change goes.
There were mixed reactions to last week’s Budget and with an election now having been called down under this is likely to cause further uncertainty for Australian Dollar exchange rates.
Only a few months ago Sterling vs the Australian Dollar was trading above 2 and one of the major factors that has caused Sterling to weaken is the EU referendum vote which takes place on 23rd June.
Foreign investment has been lower and UK manufacturing data has shown a fall to its lowest levels in 3 years during last week.
However, this has done little to halt the positive movements for Sterling vs the AUD so it goes to show how much the Australian economy is struggling at the moment.
Later this week on Thursday the UK releases its Quarterly Inflation Report followed by the Bank of England’s interest rate decision. Depending on what happens with both announcements this is likely to cause volatility for GBPAUD rates in the short term.
Some of my clients are opting to purchase forward contracts which allows you to fix your exchange rate for a future date and eliminates the risk of what may happen to exchange rates in the future.
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]