The Reserve Bank of Australia (RBA) released their latest set of meeting minutes from the previous interest rate decision and this saw the stock index in Australia (ASX) fall by 2.5%. The governor of the RBA Philip Lowe suggested that the economy in Australia could experience the biggest drop since the great depression and issued a warning over unemployment and the future of the economy in Australia.
The RBA has also predicted that the economy could contract by 6% as well as unemployment hitting 10%. They also predicted that wage growth could fall below 2% and could remain low for the foreseeable future. However, as so many countries appear to be experiencing very similar problems then this may not see the usual fallout for the Australian dollar.
The Australian dollar is a commodity based currency so often when there is geopolitical uncertainty this can see a sell-off for riskier commodity based currencies including the AUD, NZD and ZAR vs the pound so we could see some negative movement for the Australian dollar during today’s trading session.
GBPAUD Exchange Rates Over the Last Month
Last month we saw the pound trading at its lowest level vs the US dollar since 1985 with the GBPUSD exchange rate hitting 1.14 on the Interbank level. We also saw the GBPAUD exchange rate continue to rise during that period highlighting the flight to safety of the US dollar and the sell off for the Australian dollar.
However, since GBP has started to rise back against USD, the pound has also started to fall vs the Australian dollar which is better news for anyone selling Australian dollars to buy pounds.
Economic Data to Influence GBPAUD Rates
Tomorrow morning brings with it the latest set of UK inflation data for March. As the UK was not fully in lockdown during this period it may be difficult to ascertain how inflation has been affected by since the outbreak. However, the figures will provide an indication as to how inflation levels are coping so make sure you pay close attention to tomorrow’s inflation data for the UK.
If you have a currency transfer to make involving Australian dollars and would a free quote compared to using your own bank then contact me directly. We are operating business as usual so feel free to send me your enquiry and I look forward to hearing from you.