Sterling vs the Australian Dollar has again tipped past 1.70 at the end of this week’s trading but the gains for Sterling really have been limited when buying Australian Dollars.
The Pound saw some small gains following the revised second quarter figures for the UK which showed growth of 0.7% compared to the previous estimate of 0.6%.
However, whilst the uncertainty continues as to when Article 50 may be triggered in the UK this is causing real problems for Sterling not just against the Australian Dollar but also against most of the other major currencies.
The Brexit vote has caused Sterling to fall by over 30 cents vs the Australian Dollar and the lack of transparency since the vote as to when the negotiations may start is also weighing heavily on the Pound.
Foreign Minister Boris Johnson has suggested that the UK is gearing up to start the negotiations by early next year but as yet no official statement has been released by UK government although they have claimed that it will be Theresa May’s decision as to when this may take place.
In the meantime if we turn the focus to what is happening in Australia the next bit of economic data to cause movement between the Pound and the Australian Dollar will come on Tuesday when the Reserve Bank of Australia announces its latest interest rate decision.
This will be the first interest rate decision under the stewardship of new governor Philip Lowe so keep a close eye on the announcement. Personally I don’t think we see any change in the interest rate but I do think we could see the statement including possible suggestions that an interest rate cut may need to occur in the future.
Therefore, this could see a brief respite for Sterling against the Australian Dollar during the middle of next week so if you need to buy Australian Dollars it may be worth seeing what happens after the announcement.
If you have a currency transfer to make and want to get in touch for a free quote then email me directly. Having worked in the industry for over 13 years I’m confident that I can not only offer you bank beating exchange rates but also help you with the timings of your transfer.
We can also offer you things like Forward Contracts, Limit Orders and Stop Loss orders which can be used to safeguard your exchange rate.
Email me directly or fill in the form below and I look forward to hearing from you. Tom Holian [email protected]
[contact-form to=’[email protected]’ subject=’ADF 1/10/16′][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Currency Requirement’ type=’textarea’ required=’1’/][/contact-form]