RBA Keep rates on hold (Daniel Johnson)

AUDGBP Starts the Week Higher After Jobs Slump

RBA Interest Rate Outlook does not bode well

There were no surprises during the early hours as the Reserve Bank of Australia (RBA) decided to keep rates on hold at 1.5%. The RBA stated the need for consistent and sustainable growth before a hike would be considered. I am of the opinion it could be 2019 before a hike. The Aussie has suffered as a result.

GBP/AUD – The Pound had made significant advances following  a host of positive data, but this was followed by some very poor figures. Some have attributed the fluctuations to the beast from the east weather conditions although there is concern there could be serious problems with the economy in general. There was widely expected to be a rate hike from the Bank of England (BOE) in May, but following the worst GDP figures for five years last week this could well be put on hold.

Despite this, I think current buoyancy levels between 1.80-1.85 will remain. The big picture is that Sterling is chronically undervalued and GBP/AUD is only at current levels due tot he uncertainty surrounding Brexit. Clarity on the matter will strengthen the pound, keep in mind pre-Brexit levels were 2.20 +.  If you are an Aussie seller mover at 1.81-1.82. Aussie buyers 1.84 if you have to move short term.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at [email protected]