RBA Interest rate decison (Daniel Johnson)

AUD GBP Trades Above 0.5300 Ahead of Consumer Confidence

RBA keep Rates on hold

During the night we saw the Reserve Bank of Australia (RBA) interest rate decision. Rates were kept on hold at 1.5%, this was anticipated so id did not have a significant impact on Australian dollar value. The market moves on rumor as well as fact, volatility is created when things don’t go according to the general consensus.

Interest Rate Forecast

I would expect interest rates to remain at these levels for the foreseeable future due to the situation with the Australian housing market and Chinese growth. Housing prices in Melbourne and Sydney are well above the national average due to the higher wages being offered in the cities. This is all very well, but when you have foreign investors buying the properties unconcerned with the inflated process we are starting to see a housing bubble start to emerge. A very similar situation to London, a bubble that can not afford to burst.

There is also Australia’s heavy dependence on the Chinese to purchase their raw materials. Iron ore is Australia’s primary export and as such it’s price can influence Australian Dollar value. Despite Chinese growth still being healthy it is by no means as strong as previous years which is worrying considering Australian’s heavy reliance on the Chinese. It is wise to keep an eye on both Chinese growth data and Iron ore prices if you are considering trading Aussie.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at [email protected]