Sterling is now trading close to its best level against the Australian Dollar in almost two years as the Australian economy continues to shows signs of a struggle.
Australian inflation data is released on Tuesday and this could provide us with evidence of what the RBA may need to do in terms of monetary policy in the near future.
The RBA is under pressure at the moment as it appears as though the country is split between the east and the west with the western economy showing signs of a real slowdown compared to what is happening in both Sydney and Melbourne.
With the western part of the country so entrenched in the mining industry any slowdown in China will often cause the Australian Dollar to weaken and this is in part one of the reasons for the recent period of Australian Dollar weakness.
The Australian Dollar has also been affected by the decision made in the US to continue in their course of raising interest rates. In previous years Australia has had one of the highest interest rate yields available in the developed world.
However, the US has now overtaken them and this has caused global investors to move their money away from Australia and this has seen Sterling break past 1.83 during the course of this week providing some excellent opportunities to send money down under.
With the Bank of England due to meet on 10th May I think there is a strong chance of a rate hike coming in the UK as well and this could see further strength for the Pound vs the Australian Dollar. Therefore, if you’re considering selling Australian Dollars to buy Pounds it may be worth getting things organised in the near future.
For further information about how to save money when exchanging Australian Dollars and if you’d like to save money compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]