The Pound has hit its best rate to buy Australian Dollars since May this year as the antipodean currencies have weakened significantly during the last week of trading.
Australian employment figures are looking very strong and typically this would see help to strengthen the Australian Dollar against the Pound but the RBA have suggested that they do not want to tamper with economic policy whilst the labour market is going well.
Indeed, some recent predictions are that we will not see an interest rate hike until earliest 2019 which is why we have seen GBPAUD exchange rates going in an upwards direction recently.
The Pound has reversed its losses from earlier on this month when it increased interest rates at the Bank of England’s meeting and I think we could see further gains ahead.
With the US Federal Reserve looking more and more likely to raise interest rates at next month’s meeting due to be held on December 13th, it appears as though global investors are moving money away from the riskier commodity based currencies which includes the NZD and AUD, which is another reason for the positive gains seen by the Pound vs the Australian Dollar.
On Tuesday the Reserve Bank of Australia will release their latest set of minutes and I think we could see further weakness for the Australian Dollar if the minutes confirm that interest rates will be kept on hold for quite some time to come.
If you are in the process of selling Australian Dollars into Sterling but don’t have the full amount of funds available at the moment it may be worth considering buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
If you need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.
Even a small improvement in the exchange rates can make a big difference so feel free to to email me with details of your requirement and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will respond to you as soon as I can.