The Australian Dollar is gaining support from international investors, running from the fear of further European turmoil and seeking the safety of the Australian economy. This is having an inpact on the AUD to GBP Exchange Rates.
Now that the Reserve Bank of Australia has effectively removed any plans for further interest rate cuts, the base rate in Australia has a lot of appeal to investors who can borrow at virtually 0% elsewhere.
Sterling isn’t completely capitulating because it does have a certain safe haven appeal alongside but not within the Eurozone but the pound hasn’t been able to withstand the onslaught of Aussie Dollar buying.
So the chart to the left (click for larger version) shows the Sterling – Australian Dollar exchange rate pushing towards an inevitable liaison with A$ 1.5000. If the AUD can hit that marker with a bit of momentum, we should see a sharp dash towards A$ 1.48 and perhaps even a test of the longer term downward trend line at A$ 1.4600.
Many of those planning to migrate to Australia are putting funds into their accounts early in order to buy some time. As you may know, if you are also planning to move to Australia, you can open a bank account before you travel.
That will allow you to get some funds out there early and start your Australian financial history early.
Thanks to the folks from Halofinancial for providing this commentary