Rates to buy Australian Dollars have been flirting either side of 1.70 recently in anticipation of the US Federal Reserve raising interest rates at tonight’s meeting.
Typically when the US raises interest rates this results in US Dollar strength and weakens riskier commodity based currencies as global investors plough into the US Dollar.
With the chances of an interest rate hike approximately 95% it appears as though this is a foregone conclusion but as the Fed have been rather cautious during 2016 as far as raising interest rates I think when they finally confirm the action tonight then this could see GBPAUD rates break through 1.70.
The Australian economy has been wobbling recently and showing signs of a slowdown with GDP hitting its lowest level since 2011 last week. Clearly the issues surrounding a ‘soft’ or a ‘hard’ Brexit have been weighing heavily on Sterling vs Australian Dollar exchange rates and I think tonight’s decision could be the catalyst for Sterling strength.
Australian unemployment data is due out overnight and with GDP having fallen recently I would not be surprised to see this data coming out worse than the estimate of 5.6%.
Tomorrow afternoon the Bank of England will announce their latest interest rate decision and although I don’t expect any change in policy any positive comments by governor Mark Carney may see Sterling go in an upwards direction.
Clients looking to sell Australian Dollars to buy Sterling in the future may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer of currency.
If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars then feel free to contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]