Yesterday morning the Reserve Bank of Australia released their latest minutes from the interest rate decision in September. They seemed to suggest future cuts could occur which would therefore devalue the Australian dollar.
The problem is if interest rates are cut this could make the housing bubble in Australia worse as more people will be enticed to purchase property in Australia as interest rates are lower, which means they can get larger mortgages.
In other news the Federal Reserve decided to keep interest rates on hold at 0.5% last night. This has strengthened the commodity currencies as speculators have sold off the US dollar and transferred their assets into higher yielding currencies to make further profit on the interest.
Looking ahead new Governor Philip Lowe will address the public in regards to the state of the economy. I don’t expect major volatility however all of his press conference in the next 3 months are important as it will give direction to how he plans to improve the Australian economy and in particular the housing market.
If you are buying or selling Australian Dollars this week, month or year I would recommend emailing me with the currency pair (AUDUSD, AUDGBP, AUDEUR) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [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.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **