The Sterling Aussie rate jumped to 1.638 at the high of today and there could be optimism of further gains over the next few weeks. Sterling having struggled over the past few months has made some of it’s largest gains against the Aussie today. There had been optimism that the Reserve Bank of Australia would start to consider rate hikes but judging from the latest comments following the RBA’s decision earlier this week, there inst going to be a rate hike till late 2018 at the earliest.
Philip Lowe who is the Governor of the Reserve Bank suggested that it would not be in the public’s interest to consider a rate cut as it would make borrowing even cheaper. The Australian economy like much of the world has a major borrowing culture which has seen a over inflated housing market that the RBA seems to have finally got a hold of. If the Reserve Bank of Australia manage to encourage inflation to pick up then the RBA could be swift to act on a rate hike which would strengthen the AUD significantly. In my opinion neither currency is going to make major gains against the other over the next few months. The GBP/AUD rate has remained range bound just above the 1.60 level and any movement towards the 1.65 level should be considered a rate to capitalise on.
If you do have a upcoming currency requirement and would like to discuss what might be the best option, please send me an email to Ben at [email protected]. The currency markets are always moving and timing a transfer can help make sure you achieve the most for your funds. Working for a brokerage I am able to help you achieve the best rates of exchange and set alerts to make sure you capitalise on any movements on your favour.