The RBA minutes released from their recent interest rate decision have led to a boost in Australian Dollar exchange rates against most major currencies. New man in charge Lowe appeared to be a little more positive about how the economy was performing then the former Governor Glenn Stevens had been lately and it does now appear that a rate cut in Australia may be off of the cards for the short term.
Fairly positive growth figures and a slight rise in commodity prices seen coming up are two of the factors that appear to be influencing this decision and Australia also appears to have a very similar problem to New Zealand with the issue that house prices are just getting higher and higher so any cut in interest rates would only end up adding to that problem.
An interest rate cut would make it cheaper to get a mortgage and with that in mind you would end up with more people interested in buying property which inevitably would push prices up higher.
An interest rate cut is generally seen as negative for a currency as it makes it less attractive to investors so the fact that a rate cut has seemingly been delayed now for the short term has given the Australian Dollar the boost that we have seen in the past few hours.
There is still plenty of economic data out this week from China and a big release from the European Central Bank so the market still has a lot to feed off of this week so be sure to keep checking back here at Australian Dollar Forecast for the very latest news.
If you enjoy our currency market updates and you actually have a currency exchange to carry out then it would be well worth getting in contact with me personally. I have helped clients buying or selling property overseas, emigrating or having to send money for their company for nearly ten years and I created this site 5 years ago to help people like you make an informed decision.
You can email me (Daniel Wright) on [email protected] directly with a description of what you need to do and I will be more than happy to call you personally to help tailor a plan of action with you to suit your needs.