Who will cut interest rates first, the RBA or BoE? (Dayle Littlejohn)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

For Australian Dollar sellers buying sterling, the UK’s referendum has provided the best rates seen in two years. However will this improve? I believe it all comes down to which bank cuts interest rate first. The Reserve Bank of Australia have been flirting with cutting rates for months however the latest minutes didn’t give any hint that this could be as early as August 2nd.

An important economic data release to look out for this week for is the latest Consumer Price Index (inflation) numbers for Australia set to be released at 2.30GMT. The consensus is for a fall to 1.1% from 1.3% and if this is the case you could see the Australian Dollar weaken against sterling and a drop below 1% could give the RBA a reason to cut rates.

As for the Bank of England their next meeting is August 4th and I believe there’s a strong argument rates could be cut. The latest release of PMI released last Friday showed a major contraction and the lowest levels since April 2009. Some economists are predicting a recession is just around the corner and I have to agree.

If you have a currency exchange to make involving the Australian dollar, it makes sense to explore all of your options. Here at Australian Dollar Forecast we understand every client’s situation is different, therefore we devise a strategy that meets your needs and requirements. As for exchange rates we can beat any UK brokerage or bank and I look forward to proving this to you. The clients I deal with are high net individuals, businesses and property buyers / sellers that are trading 10,000 Australian dollars to the multi millions.

Feel free to email me with the reason for your transfer (transfer of wages, property purchase) and I will respond with my forecast and the process of using our company. drl@currencies.co.uk.

Enjoy the rest of your weekend and I look forward to speaking with you Monday morning.