Although the Pound dipped yesterday vs the Australian Dollar after UK inflation came out slightly lower than expected the Pound has risen once against vs the AUD during today’s trading session.
UK inflation is a key factor in determining when the Bank of England may look at raising interest rates and the chances are very high that a rate hike may occur when the central bank meet again on 10th May.
Indeed, according to some reports the chances are as high as 85% of an interest rate hike.
The Pound has made a lot of gains vs the Australian Dollar over the last few months and although we saw a brief fall earlier this week I think the negative movement will be relatively short lived.
With the US having increased rates recently the US interest rates now have a higher yield than having money in Australia and this is one of the reasons why the Australian Dollar has weakened recently particularly vs the Pound.
On Tuesday, Australia releases its latest inflation data and with the RBA having announced recently that interest rates are likely to remain on hold for the foreseeable future the data release could cause a lot of movement for GBPAUD exchange rates.
On Wednesday Australia celebrates ANZAC day so expect the markets to remain quite midweek so if you’re happy with rates are on Wednesday that may be the day to make your move.
If you would like more information about buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you.
Having worked in the foreign exchange industry since 2003 I am confident of being able to save you money so feel free to send me an email directly with an outline of your particular requirement.
Tom Holian [email protected]