Australian Dollar suffers on rate hike outlook and global fears

The Australian Dollar has taken a few steps back as the market’s recent ascendancy fails to continue. The Australian Dollar has suffered with the market not believing any interest rate hikes will be quite as forthcoming as it might be down the line, as confirmed by the RBA, (Reserve Bank of Australia) earlier this week.

The Pound to Australian Dollar exchange rate has risen presenting some much better opportunities to be buying Australian Dollars with Pounds, some of the best in the last week. This news is quite surprising since the Pound has generally been struggling against many currencies because of Brexit fears, this might well continue further this week.

Tomorrow is a key date for the Pound with the release of the UK Government’s ‘no-deal’ Brexit plans. Sterling could easily be in for a rough ride on the currency markets as a result!

Political concerns are also rife in Australia as Malcolm Turnbull has only just narrowly survived a leadership challenge. The issues concern attitudes to climate change and we could easily see such concerns rise in the future.

Globally, the Australian Dollar is at the mercy of various factors which push and pull it in different directions. As investors are positive or negative about potential global events such as Trade Wars for example, the AUD can struggle.

Increased concerns from Donald Trump that political uncertainty in the US would increase Trade Wars and also threaten global tensions, could see the Australian Dollar suffer further in the future.

If you have a transfer to buy or sell Australian Dollars, this evening’s US interest rate meeting minutes could prove a market mover. Some are now questioning just how many hikes the US can carry on with, the Australian Dollar can suffer from any big moves on its most heavily traded counterpart, the US dollar.

For more information on getting the best rates of exchange buying or selling GBPAUD, please contact me at [email protected].

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