Buying Australian Dollar rates recovering marginally following yesterday’s slides (Joshua Privett)

Buying Australian Dollar exchange rates this week have been the biggest under-performer in the marketplace, with GBP/AUD exchange rates dripping down below the 1.65 point once more.

This was due to a combination of curve-balls that have left investors and analysts frustrated at the sheer number of variable impacting GBP/AUD rates of exchange.

Markets went into the week anticipating net gains for Sterling. Strong economic performance data was anticipated on Wednesday, which ended up exceeding expectations. Furthermore the expectation of an upcoming Supreme Court ruling favorable for the Pound on the financial markets should have provided a buoyant and supportive platform for Sterling exchange rates this week.

However, two unforeseeable events stole the spotlight.

Firstly Theresa May’s comments on a Sky news interview on Sunday, which the website has documented repeatedly, caused the air of cautious confidence surrounding the Pound to be violently replaced with anxiety. Hints at a harder Brexit were made, and financial markets rarely appreciate hefty changes to the status quo.

Secondly, GBP/AUD fell foul from the most recent scandal to come from President-Elect Trump’s camp. Serious allegations have been made about the campaign’s active association with Russia, and, as such confidence in the Dollar was justifiably shaken.

In these instances, investors seek high short-term returns elsewhere whilst the storm blows over. The high interest on the likes of the Australian Dollar and the New Zealand Dollar are just the ticket and is why GBP/AUD and GBP/NZD have had the most difficult week.

However, the excitement about the upcoming Supreme Court decision is still there…if now a little quieter. 

The lessons from this week for AUD buyers is that unsuspecting news at the moment, with the charged atmosphere in the run up to the triggering of Article 50, can be more hurtful for Sterling than helpful.

As such, expected opportunities should be seized to avoid the increasing risk as we edge closer to March. The Supreme Court ruling could come out any day from now so a premium will be put on being able to move quickly this week to avoid being last to the party on any improvement, which in this currently hypersensitive market may only be around for short while.

You can contact me on jjp@currencies.co.uk or by calling on 01494 787 478 and asking the reception team for me (Josh) to discuss a strategy for your transfer aimed at maximizing your currency return and protecting it from any sudden pitfalls, which can occur in this marketplace with little warning.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

 

For more news on foreign exchange rates and to request a free no-obligation quote visit www.currencies.co.uk