The Reserve Bank of Australia published their latest set of minutes which confirmed interest rates would be kept on hold for the time being which has led the Pound to hit 1.85 against the Australian Dollar overnight leading to some excellent opportunities to buy Australian Dollars with Pounds this week.
With property prices starting to fall in both Sydney and Melbourne the RBA’s tone was rather cautious. Indeed, property fell by 6% in Sydney and 4% in Melbourne, which have previously been the best two performing markets in recent years.
The central bank went on to warn the markets that the trade policies between the US and China could continue to cause potential negativity for the Australian economy but that as Australian growth is at 3% the economy is still relatively robust.
However, as house prices are falling and wages are not going up that quickly this is why interest rates in Australia are not likely to be going up anytime soon and predictions are that the next interest rate hike may not come until 2020.
Meanwhile, the Pound is being affected by what is happening with the latest Brexit discussions and with the EU summit due to start tomorrow and conclude on Thursday the main topic will be that of the Irish border issue which appears to be far from getting sorted.
Previously, the discussions were due to end by this particular meeting but with an emergency Brexit summit planned for next month we may not see the talks concluding positively this week so be prepared for a lot of volatility coming in the next few days if you’re planning a currency transfer involving the Pound vs the Australian Dollar.
If you have a currency transfer to make and would like to save money when converting Australian Dollars then contact me directly for a free quote and a brief description of your requirement and I look forward to hearing from you.
Tom holian [email protected]