Aussie Dollar Update for October
Reserve Bank of Australia leaves Interest Rates On Hold
The Reserve Bank of Australia (RBA) left interest rates on hold at 6.50% this month (October) in a widely anticipated move. However, there is speculation that on November the 7th we could well see a rate hike of 25 basis points taking the Australian interest rates to 6.75% second only in the developed world to New Zealand who are at 8.25%.
The key to whether or not we will see a further move in November will be down to the Consumer price index figures which are due to be released on October the 24th. As well as consumers in Australia continuing to spend boldly in August, with retail figures at $19.7 billion an increase of 0.7% in the month from the previous could also spark a rate hike.
Unemployment in Australia remains close to record lows, severe drought is expected to raise food prices, and with the recent economic growth exceeding expectations this has all attributed to the increasing of inflationary pressures. This is all leading to one way speculation that Australian interest rates will almost certainly rise to contain this by the end of the year.
Currency markets are affected by many different factors – interest rates, inflation figures, employment data, commodity prices to name a few – and the markets are moving every minute of every day. As a migrant to Australia, it is paramount to ensure you are aware of market movements and any significant trends developing because the movement of your funds from Sterling to Australian dollars will have a massive impact on your future wealth.
At HIFX, the migration currency specialists, each client has their own personal dealer whose role is to make you aware of the risks inherent in the currency markets. From August 2007 to October 2007 the market has moved over 30 cents in just 1 month and because migration timeframes can be up to a two year process, it is imperative to monitor the currency markets for as long as possible. The most dangerous thing is to do nothing - by at least covering a percentage of your requirement you can spread your risk and give yourself piece of mind.
Registering as a client of HIFX costs nothing and carries no obligation to trade. By registering you will have access to our experienced dealers who can work with you to devise a strategy to transfer your funds in the most cost effective, stress free way.
To contact a member of the Migration Team at HIFX for a free currency consultation please call 01753 859159, email enquiries to email@example.com or visit the website at www.hifx.co.uk/migration.