The Pound has been steadily increasing against the Australian Dollar since the turn of the year and although we have seen some small losses for the Pound, generally speaking the market for anyone looking to buy Australian Dollars has been very positive.
With the US threatening to continue raising interest rates the next interest rate hike by the Fed is likely to come in March and this is in part why we have seen the Australian Dollar struggle against the Pound.
On Tuesday the latest set of minutes are due to be released by the Reserve Bank of Australia and I think this could provide the catalyst for Sterling strength against the Australian Dollar as I think the RBA will be relatively cautious in their tone.
If you look at the markets through the eyes of a global investors if you have available funds it is likely that you would look to invest in the US as with interest rates planned to be going up as well as strong growth in the world’s leading economy this could potentially be a good investment.
This could result in a sell off for riskier based currencies such as the AUD and this is why I think in the longer term that we’ll see GBPAUD exchange rates challenge 1.80 before the end of this month.
On Tuesday the UK releases the latest Quarterly Inflation Report Hearings and as inflation has continued to remain higher than the target I think this will put pressure on the Bank of England to look at raising interest rates possibly as early as May.
On Wednesday the latest UK unemployment data is due to be published and although this has been very strong one of the concerns is Average Earnings which have been lagging behind inflation so this could see a bit of volatility for GBPAUD exchange rates in the middle of the week.
If you would like to free quote when buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly. Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of being able to save you money and help you with the timing of your transfer.
Feel free to email me directly with a brief description of your requirement and I look forward to hearing from you.
Tom Holian [email protected]