Best Exchange Rates for Australian dollars: The Exchange Rate for Sterling (GBP) to Australian dollars (AUD) is at its Lowest in 20 Years.

February 20th, 2012
Best exchange rates for Australian dollars is currently at a high with the Pound to Australian Dollar exchange rate (GBP AUD) currently at 1.4651(8th February 2012), this month the Australian dollar has surged, this was following the Reserve Bank of Australia (RBA) announcing that it was keeping its key lending rate on hold at 4.25%, this was unexpected as many analysts anticipated that the RBA would continue its cutting rates down to 4%. Many believe that this low will be short lived as a more accommodative monetary policy will be needed in order to encourage domestic growth for the country, this stance on the lending rate will force professionals to keep a close eye on exchange rates over the coming months.
The best exchange rates for Australian dollars remains high as the Reserve Bank of Australian appears to have put its faith in the ability of external demand to hold up the Australian economy. The central bank policymakers took the gamble that Chinese growth and some form of lasting solution to the European mess would drive demand for Australian commodities; the RBA has left the door open for further cuts should the process of stabilizing Europe become unstuck. This comes as world markets wait for Greece to adopt the strict measures needed to lock in financial support that will allow it to avoid debt default. If the Greek bailout didn’t succeed, it would have a notable impact on the Australian dollar’s relationship to both the Euro and the US dollar.
Australia’s official rate is the highest among G20 countries; only South Korea’s, at 3.25 per cent, comes close. The Australian dollar also wins elsewhere, Since the Eurozone crisis began, there has been a desire to spread investments out of Europe, this has also helped the Australian dollar, as it’s been an obvious destination. On the other hand this news has not been positive for everyone those most affected being exporters and retailers with the value of the dollar putting many Australian trade-exposed industries under real pressure. Many economists believe that the RBA has taken a risk by not providing further stimulus to the economy despite signs that the job market is slowing as industries not linked to the mining investment boom struggle to adjust to an uncompetitive currency.
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