The Pound has maintained its recent run of good form vs the Australian Dollar during the course of the week ending Friday afternoon with the Interbank level trading at above 1.78 for GBPAUD exchange rates.
Australian inflation data came out lower than expected earlier this week and as we have seen with the UK back in November if inflation rises then the general policy is to raise interest rates.
With inflation down under falling then this means that the Reserve Bank of Australia are much less likely to be looking at raising interest rates in the near future.
On Wednesday evening the US Federal Reserve confirmed that they would be keeping interest rates on hold for the time being although the tone was rather hawkish, which means that a rate hike could be coming.
Indeed, the expectation is currently at 88% that an interest rate hike may occur in March and this is why we have seen the Australian Dollar continue to remain weak.
Global investors are currently offloading the AUD, NZD and ZAR which typically used to have very attractive yields on interest.
However, with the US looking at increasing interest rates as well as having a very strong economy as proved with Friday afternoon’s fantastic jobs report creating 200,000 new jobs in January, money is being ploughed into the US at the moment.
On Tuesday, Australia releases its latest Trade Balance Figures as well as Retail Sales and both will be key to determining what will happen to GBPAUD exchange rates during the course of next week.
The RBA will also announce its latest interest rate decision so if they are quite cautious in their approach could this send GBPAUD rates towards 1.80?
If you have a need to make a currency transfer buying or selling Australian Dollars in the near future then feel free to contact 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 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.