In the early hours of this morning the Reserve Bank of Australia released their latest minutes and they seemed to be a non-event as no clear indication was given for future policy. It was key to note some points. China’s GDP had slowed and Australian inflation remains at a level below most central banks target.
The UK and Eurozone are both considering easing further monetary policy and the US’s hike in interest rates is off the cards. This negative outlook from Australia shows to me that the RBA could cut interest rates in the near future which would devalue the Australian dollar. The last time we saw the RBA cut rates GBPAUD increased by 10 cents.
Rise in UK inflation
This morning we have seen UK inflation show a slight improvement from o.4% to 0.5%. In recent weeks there has been a lot of hype from the media that the Bank of England would cut interest rates either this morning or next. However with inflation improving will the BoE have to rethink their strategy?
If you had read my blog from the weekend I prediced that UK inflation would rise and therefore sterling would spike against the Australian Dollar. Some clients that got in touch after the weekend traded their Australian Dollars into sterling yesterday which means they got a better price than trading now and my Australian Dollar buyers are holding off just until the market starts to level out.
No one has a crystal ball however it just shows if you get in contact it betters your chance of receiving a more competitive exchange rate!
The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade Australian dollars at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company[email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn