New Governor of the Reserve Bank of Australia Philip Lowe, made numerous press conferences last week and in particular addressed interest rates and the housing problem throughout Australia.
As for interest rates the Governor stated the RBA would make further cuts in the future to keep consumers spending if he had to however at the moment he wants to try alternative methods. Throughout the same press conference the Governor stated the over inflated housing market is a serious problem and for Australia people house prices need to stop rising.
The problem is, if the Governor decides to cut interest rates in the future this will entice spending and the volume of people applying for mortgages. If houses continue to sell, especially in the major cities there’s a goof chance house prices will continue to rise.
On a positive note the Governor did take a bullish outlook in regards to Australian exports. He felt that the mining industry commodities had bottomed out therefore commodity prices could only go in one direction.
Its a quiet week for Australian economic data releases therefore I feel exchange rates will be impacted by events elsewhere.
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! **