Overnight last night the RBA (Reserve Bank of Australia) kept interest rates on hold which had been widely expected, however the most interesting piece of information to pull from this happened to be comments from the RBA interest rate statement.
In this statement Governor Lowe commented that he did not feel it would be right to use economic policy to try and help the economy grow, which was a hint that he may not be cutting interest rates as soon as many had first thought.
His reason behind this was that should he cut interest rates it would encourage more borrowing and this may lead to further inflating house prices in Australia which are already rocketing and have been for a while.
An interest rate hike is generally seen as positive for the currency concerned and a cut in rates is seen as negative so that fact that a cut may have been pushed back further has been seen as a real positive for the Australian Dollar so we have seen it gain strength overnight against most major currencies.
For anyone looking to exchange Australian Dollars in the coming days, weeks or months ahead there is still plenty of movement expected for what is generally a fairly volatile currency. Overnight tonight we have Chinese import and export data which is one to also watch out for as it can have a large impact on Australian Dollar exchange rates.
If you need to buy or sell Australian Dollars in the coming days, weeks or months ahead and you want top get the most for your money then it is well worth getting in contact with me directly. A lot of people that contact me are using online platforms to buy their currency and although this is convenient they do not realise that they certainly do not get the most for their money as they have no power of negotiation with a computer.
We are different here, we can get you better rates of exchange and alongside this we offer a fantastic level of customer service, if you would like to find out more about how we work and how I can help you then feel free to email me (Daniel Wright) on [email protected] and I will be happy to contact you personally.