RBA Meeting Minutes and the EU Summit set to dominate GBPAUD exchange rates

RBA Meeting Minutes and the EU Summit set to dominate GBPAUD exchange rates

The Reserve Bank of Australia will announce their latest Central Bank meeting minutes tonight which is likely to reinforce their policy decision to keep interest rates on hold again, owing to the global uncertainty and the current trade wars between the US and China.

The Australian dollar has weakened during the course of this year against both the US dollar and sterling, and the disparity between the Australian interest rate compared to the US interest rate is now currently at 0.75% which is the biggest difference since the Australian dollar was launched over 35 years ago.

During the time of the credit crunch ten years ago one of the only countries to thrive was Australia, owing to its reliance on China, which was booming at the time.

However, recently we have seen the Trump administration increase tariffs on the world’s second largest economy, which has caused the Australian dollar to suffer, as China is Australia’s largest export partner.

Turning the focus to what is happening in the UK at the moment; the news headlines are dominated by the Brexit talks.

These talks are due to start again on Wednesday when the latest EU summit takes place. At the top of the agenda will be the Irish border issue which has caused a lot of problems between the UK and the European Union during Brexit negotiations.

Personally, I think it is just a matter of time before the border issue is resolved, but until then the pound is likely to remain under pressure. Make sure you’re well prepared in advance of the EU summit which begins on Wednesday and is due to conclude on Thursday.

If you’d like further information on any of the above, feel free to use the form to get in touch and ask a question. I’ll be happy to respond personally and discuss your enquiry.