Australian Retail Sales for February came out lower than expected yesterday at -0.1% compared to the expectation of 0.3% and bad weather down under has been blamed for the lackluster data.
However, the main news overnight was that the Reserve Bank of Australia has decided to keep interest rates on hold for the 12th month in a row. Indeed, the latest forecast is that interest rates are likely to be kept on hold until some point next year.
The real issue for the RBA is that the central bank are in a bit of a quandary as to how to control the already over inflated property market in Australia.
According to RBA governor Philip Lowe household borrowing is now a lot more than household income which is clearly a concern but an interest rate cut could cause more demand for the property market sending prices even higher.
In the meantime the UK posted worse than expected manufacturing data yesterday morning for March which caused the Pound to weaken marginally against the Australian Dollar.
Since the trigger of Article 50 last week the GBPAUD exchange rate does not appear to have made its mind up which way it will go.
On Thursday China releases its latest set of Services PMI data so anything lower than expected could cause the Australian Dollar to weaken vs the Pound.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident that not only can I offer you better rates compared to using your own bank but also help you with the timing of your currency transfer.
If you need to buy or sell Australian Dollars and would like further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]