We have recently seen a number of resignations from MP’s in Australia due to the issue with dual nationality which has caused a little political uncertainty, generally seen as negative for a currency.
This current issue surrounds a constitutional law from 1901 that anyone holding a duel nationality is unable to serve in the House of Representatives. It appears that numerous MP’s had no idea about this need, hence the fact some have now been caught out. There is now growing pressure on the Australian Government to carry out checks on at least another 200 members to ensure they do not fall foul of this too. Any further news of more resignations coming may add weight to the pressure on the Australian Dollar, leading it to get a little weaker.
There are four main factors that can impact the strength of a currency, these are economic stability, political certainty, acts of terror and acts of god and political problems can lead to weakness for a currency, just as much as economic issues can too.
Today will be important for anyone looking to buy or sell Sterling against the Australian Dollar, as we have the latest Bank of England interest rate decision in the U.K where the Bank of England are expected to look at raising interest rates by 0.25%.
Should this happen then the Pound may gain a little value against the Australian Dollar, although we may have seen much of this movement priced in over the past week or so. Be aware that if the BOE do not hike rates, or should they hike with 0.25% but release fairly negative comments about future hikes then we may see a drop off in the value of Sterling, making Australian Dollars more expensive to buy with the Pound.
If you have the need to buy or sell Australian Dollars against any major currency then it may be prudent to contact me directly, generally I will be able to save you money on your exchange rates both by getting you a better rate than your current broker and by assisting you with market information so that you have help with the timing of your transaction.
If you would like my assistance then please do feel free to get in touch with me directly by emailing [email protected] and I will be more than happy to contact you personally.