After yesterday’s news that China’s growth is starting to slow, the Aussie Dollar has taken sizable losses against the USD, EUR and GBP.
GDP figures are being released all over the globe this week and it informs us of how much a countries economy is growing or contracting. The effect of GDP figures all over the world has a big effect on investor sentiment and this has a knock on effect on the Aussie Dollar. This morning we have seen European GDP contract by -0.4% for the quarter and is down -0.2% for the year. Due to the contraction investors seem to have turned away from the riskier higher yielding currencies like the Australian Dollar and seem to be turning back to the safe haven of the US Dollar.
Over the last couple of weeks the AUD has been on a fantastic run strengthening to all-time highs against the Euro, near all-time highs against the pound and well up over 1.05 against the USD. It is debatable as to if the rates are about to turn but if we continue to see bad data to come out of China & Europe then we may just see the recent gains be reversed. The Aussies losses have been welcomed by many who have been looking at making a transfer to Australia. Although I feel that in the future we may see a slight interest rate cut by the Reserve Bank of Australia which would weaken the Aussie further I feel that we may only see a small weakening of around 2-3% over the next month. If you require selling your Aussie Dollars with levels so appealing I would recommend at looking at doing this as soon as possible. If you are looking at buying the AUD then I would see how things progress over the next month but be in a position to move should you feel the level be acceptable.
Regardless of if you are looking at buying or selling the Aussie you must make sure that you get the best rate when you actually look at doing your exchange. We feel that we offer clients significantly better rates than the banks in Australia, Europe and the UK. If you have a requirement to buy any major currency and would like to have an informal chat to see if we may be able to assist you with your currency exchange please do feel free to email me at [email protected]