The Pound recovered slightly against the $AUD in June, hitting a 2 month high after the minutes from the RBA’s last meeting cited that easing demand and a softening labour market as reasons to keep interest rates on hold at 7.25%. However, these moves are, perhaps, only corrective and we may see a continuation of the overall downward trend over the coming weeks, with the psychological $2.00 mark still at risk.
Stronger growth and sales figures from Australia were briefly offset by the corrective jump following the release of the RBA’s minutes, but the Dollar rallied towards the end of the month, closing at around the $2.07 mark with further strengthening looking inevitable. The Australian economy continues to grow whilst the UK economy continues to come under pressure, with every tabloid and broadsheet printing another bad news story on a daily basis!
It is not surprising, therefore, that so many of you have decided to migrate! What you may be losing in the exchange rate, you are more than making up for in the lifestyle and job opportunities for yourselves and your families in Australia.
Understandably, however, you may be reluctant to move the bulk of your funds over at the moment, with the exchange rate where it is. You may be renting for the first 6-12 months and therefore not require all of your funds immediately, but what if the rate doesn’t improve in that time, and the price of your house in Oz goes up? This is certainly something to consider when doing your calculations.
Of course the major hurdle many of you will be facing at the moment is the slowdown in the UK housing market, and the time it is taking to sell your house. Some clients have decided to release some equity from their property, giving them sufficient funds to make the move and settle before the bulk of their funds are released from the sale.
There is no right or wrong option, but for those of you who are leaving for Australia over the coming months, forward planning is of the utmost importance and could save you thousands of pounds to start your new life. For a free, no obligation consultation about your situation and the options available please contact the migration team at HiFX on +44 (0) 1753 859159.