RBA leave interest rates on hold as expected (Daniel Wright)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

This morning the RBA (Reserve Bank of Australia) announced that they would be leaving interest rates on hold at 1.5% which was exactly as the markets had originally expected.

The decision didn’t have a huge impact on the value of the Australian Dollar as it had been widely expected that rates will remain on hold for the coming months.

An interest rate hike is generally seen as positive for a currency and a cut in rates is seen as negative so interest rate movements can be key for a currencies strength. Even the mere mention or speculation of a hike or cut in interest rates can lead to exchange rates moving quite a lot, so any hints or change to the likelihood of a rate change may be of great importance if you have a pending exchange to carry out.

I still personally feel that the Australian Dollar may have a slightly rough patch coming up, although it does have a great backbone and constantly seems to fight back even in the toughest of times.

We have a huge amount of economic data due out in China tomorrow which will be key for where Australian Dollar exchange rates head for the rest of the week, along with Chinese inflation data on Thursday too. We have very little out from Australia over the course of the week that should impact the value of the Australian Dollar so focus will no doubt be on what the data from China brings.

Chinese data can have a large impact on the value of the Australian Dollar due to Australia’s large amount of exports to China so this data is important for anyone looking to buy or sell Australian Dollars.

If you have the need to buy or sell Australian Dollars in the coming days, weeks or months then it may be prudent to get in contact with me directly and I would be more than happy to help you.

Not only can we better rates from all major brokerages but we can also help you with the timing of your transfers, we have various contract types that we can offer from limit orders to forward contracts and can help tailor a game plan to suit you personally. Making international transfers is important and the difference from broker to broker can be thousands of Dollars. Feel free to contact me (Daniel Wright) by emailing djw@currencies.co.uk and I will be more than happy to get in touch with you personally.