The Pound vs the Australian Dollar has marginally crept up overnight after the Reserve Bank of Australia suggested that the construction sector down under is beginning to show signs of a slowdown. If this carries on it could result in a lot of job losses going forward which is likely to be detrimental to the Australian economy.
According to a report from BIS Oxford economics they have also forecast as fall of 31% in the number of new properties being built over the next three years and this could be the biggest drop in almost twenty years for the sector.
Australian household debt has also seen an increase to as much as 190% of household income which is clearly far too high.
This is a big concern for the RBA who have a difficult decision concerning interest rates and which direction they will move them in.
It could be argued that an interest rate hike is necessary to cool the already over-heated property market but with household debt rising an interest rate hike could cause big problems for the economy.
Therefore, the RBA have been rather cautious recently with monetary policy and have used the practice of ‘jawboning’ which is essentially suggesting something may happen without actually doing anything.
Overnight tonight Australian unemployment data is due out with the expectation for 5.6% so anything different could result in volatility for Sterling vs the Australian Dollar.
If you have a 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 (Tom Holian) on [email protected] and I will endeavour to get back to you as soon as I can.