Time Is Right For a GBP/AUD Money Transfer To Australia

Modified: Thursday, 20 March 2014 15:56 BST - Written by Tim Boyer

STORY LINK Time Is Right For a GBP/AUD Money Transfer To Australia

Events in the global economy over the past 24hrs have triggered a near-term improvement in the Pound Australian Dollar exchange rate GBP/AUD making it an opportune moment to make a money transfer to Australia.

Last night’s US Federal Reserve policy decision included the expected $10bn reduction to the monthly amount which America’s central bank is committing to its Quantitative Easing programme. In itself, this move did not have any pronounced effect on global risk appetite or the relative value of the Australian Dollar. However, comments from new Fed Chairwoman Janet Yellen in her press conference which followed certainly triggered selling pressure on the Aussie.

Yellen stated that she expected QE to be finished in the States by Autumn and suggested during her ‘Questions and Answers’ session that an increase to US interest rates could follow only six months later. The news came as a blow to high-yielding export driven currencies including the Australian Dollar, sending the GBP/AUD exchange rate sharply upwards, with the pair trading at close to the 1.8400 threshold earlier.
Tuesday’s session saw the GBP AUD exchange rate drop to a fresh 5-week low of 1.8122 as investors moved to factor in a relatively encouraging set of Australian employment data and the more positive tone of the Reserve Bank of Australia’s rhetoric regarding its key lending rate. Looking at the bigger picture, the general trend for GBP/AUD since it broke to a 4 ½ year high on 24th January has been to the downside. This medium term shift lower looks set to continue thanks to the RBA’s change of tack making now a great time for clients immigrating to Australia or investing in the Antipodean nation to make a money transfer to Australia. Conversely, UK citizens in Australia sending money home to the UK might be well advised to hold off for the Aussie to reassert itself against the Pound.

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