Australian Dollar continuing to strengthen

Overnight the Reserve Bank of Australia increased the national interest rate to 4%, the fourth time they have increased the cost of borrowing in 6 months. This will undoubtedly give the Australian Dollar further strength.

Over the past 12 months GBPAUD exchange rates have dropped by in excess of 60 cents from 2.25 to its current level of 1.65, that s a difference of AUD 120,000 on a conversion of £200,000!!!

The strength of the Australian economy is mainly as a result of it virtually avoiding recession and therefore being used as a flight to safety for those with concerns about the security of their savings. Since then more and more investors will be putting funds into the Australian economy as a result of them having higher interest rates and therefore greater yields.

It really does appear that the early bird really is catching the worm, over and over again!!