The Pound vs the Australian Dollar has hit a 6 week high which is good news for anyone looking to send money to Australia.
The spike has occurred in part due to the tightening lending standards in Australia which has caused a problem for the Australian housing market and this has seen house prices fall in recent times.
This is a big reason for the Reserve Bank of Australia keeping interest rates on hold and with the US Federal Reserve recently raising interest rates for the final time this year global investors have been selling off the riskier based commodity currencies including the Australian Dollar, New Zealand Dollar and South African Rand in favour of a more stable US Dollar.
The mortgage companies as well as the banks have been previously lending to people without clearly identifying whether or not they would be able to afford to pay back the loans and this means that Australian banks are now paying the price for the previous problems.
In Perth, which is one of Australia’s largest cities, house prices have fallen by over 15% in the last four years and Sydney and Melbourne have also started to see a small slowdown and this means any interest rate hike down under in unlikely to be coming any time soon as this would have a direct impact of the Australian property market.
With the Reserve Bank of Australia due to be keeping interest rates on hold for the foreseeable future and the US Federal Reserve likely to keep on raising rates in the early part of 2019 I think we are due to see further Australian Dollar weakness ahead so if you’re looking to exchange Australian Dollars into Sterling it may be worth getting this organised in the near future.
The one problem that could halt Sterling in its tracks is that of the ongoing Brexit turmoil which could cause a problem for Sterling.
With the next Brexit vote due to be held in the second week of January this could cause further volatility so make sure you’re well prepared for any eventuality.
Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to save you money on exchange rates compared to using your own bank but also help you with the timing of your transfer.
For further information and a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]