Any clients with an upcoming AUD currency exchange to execute, would have been keeping a close eye on the latest Reserve Bank of Australia (RBA) monetary policy statement.
This was released and as expected, the central bank predicted economic growth to accelerate during 2018. They predicted Gross Domestic Product (GDP) figures to hit 3.25% by the end of this year, before peaking at 3.5% during 2019.
Despite this positive outlook they remained dovish regrading inflation levels, as they do not expect these to hit their target level until 2020. This is a key indicator that interest rates are likely to remain at the current record lows for the foreseeable future.
Despite no indication of a rate hike the AUD has performed well of late, particularly against Sterling.
GBP/AUD rates fell below 1.80 overnight and despite the Pound finding some support back above this threshold, the AUD is likely to hold its position as we head into the bank holiday weekend.
The AUD has gained over 5 cents in the past two weeks, which is equivalent to an additional £1,500 on 100,000 AUD/GBP currency exchange.
Investors will still be wary about any potential slowdown in the global markets having a negative impact on the Australian economy, which relies heavily on the export of its raw materials. Any major slowdown in this sector is likely to hit the AUD but for the time being it is the UK economy which is being viewed in a more negative light.
A poor run of economic data has dragged the Pound’s value down and given those clients with an AUD/GBP currency exchange to execute an opportunity, that seemed unlikely to occur only a couple of weeks ago.
If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.