The Australian dollar has been performing slightly better of late after a disappointing inflation report from the US which could persuade the US Fed to pause on the rate increase cycle where a hike has been widely expected this December.
Those clients looking to convert Euros into Australian dollars are seeing levels sitting just off a one year high for this pair. The recent economic improvement in the Eurozone with steady economic growth and higher inflation has helped see a strong rally for Euro exchange rates over the last six months. There is a strong chance the European Central Bank will look to taper its asset purchasing scheme at the next meeting and this should help the Euro strengthen further. EUR AUD is currently sitting at 1.50 for this pair and there may be some more room in this rally. For anyone selling Euros for Australian dollars there could be some better opportunities to come so please get in touch for assistance with the timing of your future exchange.
The pound has fallen against the Australian dollar in afternoon trade today as Brexit uncertainty continues to be the main driver for sterling Australian dollar exchange rates. GBP AUD slipped to a low of 1.6793 earlier today moving well away from the 1.70 barrier. Despite UK inflation hitting 3% earlier today the markets are still not fully convinced that there will be an interest rate increase at the November meeting. This uncertainty is keeping additional pressure on the pound although my view is that the Bank will look to raise interest rates at the November meeting.
Comments from Mark Carney today were also very hawkish in that he said he expected inflation to rise even further. A rate increase by 0.25% in November seems the logical step for me and the pound should rally by a small degree on the back of it. Clients buying Australian dollars might be wise to see the outcome
If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]