Overnight Australian Unemployment was shown to be better than expected which has helped contribute to a further spike in the value of the Australian dollar. Earlier in the week some positive UK Inflation data helped the pound a little pushing GBPAUD back over 1.70 but currently we are in the 1.69’s. With the Australian central bank the Reserve Bank of Australia having cut interest rates recently and many commentators stating that they don’t feel cutting interest rates will really help the Australian economy very much I don’t see there being much chance of significant renewed AUD weakness. There is always the outside chance of some negative news from China contributing to a weaker Aussie but with some of the more recent Chinese data showing positive trends for now attention remains on the pound. Plus the Australian currency at 1.5% has a much higher interest rate which will present better returns for investors seeking a higher return, this keeps the Aussie favourable against say sterling with almost 0% interest rates.
The pound to Australian dollar rate has slipped from over 2 to now in the 1.60’s just like we predicted on a Leave vote. GBPAUD rates have been flirting with 1.70 and the big question now is will it drop further, when will be the best time to buy Australian dollars? Well it would appear that if you have Australian dollars to buy then moving sooner rather than later is probably the safest bet. This is because much of the recent movement on sterling is linked to the outcome of the Referendum and so far we know very little detail about what this actually means in practice. This political uncertainty is contributing to a slowdown in business and consumer activity which is leading to poor economic data and surprise, surprise the pound is falling!
If you have a transfer involving buying the pound or Australian dollar and wish to learn more about the forecast and your options why not get in touch with one of highly experienced and knowledgeable team? My name is Jonathan Watson and I personally have been helping clients buying and selling currency for over 7 years. Even if you believe you a system in place double checking your exchange rate and information could prove invaluable. I personally have never had any problem getting my clients much better exchange rates than their banks, or their currency broker. For more information please fill in the contact form or if you prefer a more direct and personal approach please email me Jonathan directly on [email protected].
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