The Pound has had a relatively strong week against the Australian Dollar after we saw inflation figures in Australia drop compared to the expectation.
Figures were predicted to come out at 1.8% but they fell to 1.5% and this is likely to add further pressure to the Reserve Bank of Australia to consider cutting interest rates sooner than they may have previously considered.
The RBA are under pressure to look at cutting interest rates in an attempt to help the ailing property market as well as trying to control falling inflation so this week’s data is likely to bring an interest rate cut forward and this could happen as early as 7th May when the RBA holds its next monetary policy meeting.
The general expectation for interest rates in Australia is for two cuts this year bringing interest rates to their lowest level on record at just 1%.
However, as Australia goes to the polls next month to vote in the next election on 18th May the RBA may just hold fire from changing monetary policy as to change things now could cause a lot of volatility for the markets if the central bank intervenes too soon.
Current Prime Minister Scott Morrison has tried to defend his economic record during his tenure but with GDP figures slowing down during the last year he is facing questions as to how he can turn the economy round under his stewardship.
As we move into next week the key data release of the week could be Thursday’s Chinese Manufacturing PMI data. As China is such a huge trading partner with Australia this can often have a large bearing on the value of GBPAUD exchange rates so make sure you’re well prepared for what could be a busy end to the week.
I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident not only of being able to save you money when exchanging Australian Dollars but also to provide you with further information as to how the market is moving.
For a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]