The Pound to Aussie Dollar exchange rate hit 1.66 in the early hours of this morning, and this was the first time in over 2-weeks that we’ve seen the Pound trade this high.
The headline comments from the Reserve Bank of Australia in the early hours came in the form of a warning, saying that the ‘Aussie’s recent strength has been placing pressure on the Australian economy’ and this resulted in the selling off of AUD.
The RBA appears to be fairly neutral in its outlook for future growth after suggesting that forecasts for the Australian economy remain unchanged (currently at 3% annually).
The fall for the Aussie dollar came after data showed that sentiment within the Manufacturing sector strengthened, along with the positive move of 7% increase in the value of Iron Ore which has given AUD a boost.
It appears that the RBA would prefer a weaker Aussie Dollar and I think that those planning on converting Aussie Dollars into Pounds should consider the gains they’ve seen recently, and whether they think the Aussie can continue to strengthen at its current rate.
This Thursday is likely to be a busy day for Sterling exchange rates as a whole and I expect to see the GBP/AUD rate see volatility. Thursday is being billed as ‘Super Thursday’ and if you would like to discuss why in future detail do feel free to get in touch.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.