Over the last few weeks we have seen Sterling vs the Australian Dollar move by over 5% which on a currency transfer of AUD $200,000 is in excess of £5,600.
The currency movement for GBPAUD rates has mainly been caused by what is happening in the British economy and UK economic data that has been announced during this period.
Since the Brexit vote we have also seen GBPAUD exchange rates move by as much as 30 cents as the uncertainty caused by the UK’s decision to leave the European Union has created a huge level of uncertainty.
The new Reserve Bank of Australia governor Philip Lowe has now replaced Glenn Stevens who was at the helm for 10 years and we could be in for an interesting period ahead for the Australian economy.
Yesterday Philip Lowe spoke about Australian interest rates and the housing bubble in major cities in Australia and has suggested that interest rates may be cut at some point in the future.
The problem that Australia is facing is that the economy itself is in need of an interest rate cut and this has been freely admitted by the central bank but the housing market could continue to spiral upwards as this makes property more affordable as lending costs fall.
However, at the moment the way Sterling vs the Australian Dollar is likely to continue to be affected is by what is happening in the UK.
The Purchasing Manger’s Index releases recently have included Services, Manufacturing and Production data and all have shown mixed signals.
With the UK set to release GDP figures next Friday which covers the second quarter of 2016 this will include the Brexit period and could see huge movement on exchange rates.
Therefore, if you’re concerned about what may happen to exchange rates prior to this release in order to avoid the uncertainty then it may be worth organising your transfer prior to this release.
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.
Having worked in foreign exchange for 13 years I’m confident that not only can I save you money but also help with the timings of your transfer.
Email me directly Tom Holian [email protected]