The Aussie Dollar has continued to strengthen against a range of currencies over the weekend including gains against GBP, USD, EUR & YEN. Rates are now hovering at around a 2 month high against a range of currencies and now may be an extremely good time to capitalise on this if you have a requirement to buy any of the above currencies.
The main reason for the Aussie Dollar strength is due to investors appetite for risk once more. Euro zone leaders had a summit last week and an agreement was made to take the pressure off national budgets by using the continent’s bailout fund to provide direct support to struggling banks.
You often find that when confidence is put back into global financial markets the Aussie Dollar goes on a run and strengthens very quickly. So when European ministers agreed measures aimed at sorting out the Euro zone’s sovereign debt crisis there was a very quick run on the Aussie Dollar.
Over the last month with all the uncertainty in Greece and Spain we witnessed the Aussie Dollar lose significant strength. This was because investors decide to move into the safe haven of the USD and move away from the riskier currencies like the AUD. So now that some confidence is back with in the Euro the AUD has gained once more. The question is for how long?
There will be more issues come out of Europe over the next few months. If you are looking at buying or selling the Aussie Dollar I would recommend using events in Europe to your advantage. When there is confidence in Europe sell your Aussie Dollars to buy any major currency and try and do this when there is a good spike in the market like at present. If you need to buy the AUD then try and do this when times are uncertain when the Aussie weakens over the course of a week or two.
If you would like to speak with me about a currency transfer that you need to make over the next few weeks or months then you may email me at [email protected] I will be happy to discuss all the options that are available to you and also explain how we can help assist you getting a better rate of exchange than your high street bank.