The Reserve Bank of Australia released their latest meeting minutes last night which showed no real change in their views on the economy or interest rates. They appear to be stuck in a familiar holding pattern with no large expectations of a move in one direction or the other. The general impression is longer term we will see the interest rates begin to rise down under but it doesn’t appear to be on the cards just yet. If you are looking to buy Australian dollars we could see some big improvements around the time of the UK election but of course there are no guarantees, we could easily see the pound lower if Theresa May doesn’t fulfill the high expectations!
If you need to buy Australian dollars with pounds then we are close to the best rates in 2017 with the possibility of rates improving further. I personally believe sterling will come under pressure in the run up to the UK election before rising after. If you have a transfer buying the Australian dollar moving on this improvement or after the election is I believe sensible. And for those selling Australian dollars to buy pounds the opposite is true. You could be looking at quite a unique opportunity to buy the currency from both angles in the next four weeks, being prepared for the movements is key!
If you have a transfer to make buying or selling Australian dollars in the coming weeks making plans in advance is sensible to try and navigate the volatility. We are in for a truly tricky period where rates could suddenly move a good few cents. As we often say when the Aussie moves it doesn’t just move a couple of cents it can move 5-10 cents in a short space of time, just like happened recently.
For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected] to get a full overview of your position and all of the ins and outs of transferring funds internationally. We are here to help with the planning and execution of any deals you will need to make sure you don’t miss out should events take an unexpected turn.