The Pound has continued to remain strong against the Australian Dollar and although we have seen a small drop in the value of GBPAUD exchange rates I still think we could see further gains for the Pound in the long term.
The interest rate down under is now lower than that on offer in the US and this was one of the reasons for the Australian Dollar’s recent demise against the Pound.
If you’re a global investor and you’re offered a higher yield in the US, who are also showing strong signs of growth, why wouldn’t you move funds away from riskier commodity based currencies such as the AUD in favour of the USD?
The Reserve Bank of Australia has recently confirmed that interest rates will be staying the same for the time being meanwhile the Bank of England have demonstrated that they may be looking to increase interest rates in the UK in the near future.
The recent vote by the MPC was 7-2 in favour of keeping interest rates on hold and clearly there is an appetite for an interest rate increase.
UK Average Earnings have recently surpassed inflation levels and in my opinion I think this allows the central bank room to seriously consider raising rates and I think this could possibly happen next month which could give the Pound a further boost against the Australian Dollar.
On Tuesday we could see some potential movement for the Pound vs the Australian Dollar with the latest NIESR GDP estimate for the last three months. Owing to the recent bad weather in the UK I think this estimate could cause a lot of volatility so make sure you’re well prepared for the movement on GBPAUD rates.
Having worked for one of the UK’s longest established currency brokers for 15 years I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.
Please send me an email with your particular requirement and I will come back to you with a detailed response.
I look forward to hearing from you
Tom Holian [email protected]