The Pound has ended the week with two consecutive days of falls vs the Australian Dollar after a difficult day of UK economic data on Thursday.
The Quarterly Inflation Report showed that inflation is predicted to hit 2.8% with average earnings hitting just 2%. Therefore, this means that the cost of living is rising whilst wages are falling.
This led to the Pound falling against the Australian Dollar after making consistent gains for a number of weeks. Indeed, compared to a month ago when rates were struggling to break past 1.60 we have now seen GBPAUD rates trade as high as 1.77 during the course of this week.
However, it appears at least for the moment that the positive run for Sterling vs the Australian Dollar has now come to an end.
On Tuesday the Reserve Bank of Australia will release their latest minutes from their previous meeting.
With the central bank having kept interest rates on hold for the 9th consecutive month recently I think we could see a small weakening for the Aussie Dollar vs the Pound if the RBA confirm that there is little appetite for any change in interest rates.
During this month with the Tories set to dominate the general election I think this could result in further stability for the UK which in turn could help the Pound challenge towards 1.80 to buy Australian Dollars.
Having worked in the foreign exchange industry since for almost 15 years for one of the UK’s leading currency brokers I am confident that not only can I save you money on exchange rates compared to using your own bank but also help you with various options including forward contracts which allow you to fix an exchange rate for a future date for a small deposit.
To find out more information or a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]