Over the last week we have witnessed sterling gain 3 cents against the Aussie Dollar. Australia’s biggest trading partner is China and recent news that the Chinese economy is slowing has hindered the AUD from continuing its strong gains against most northern hemisphere currencies. Australia’s biggest export is Iron Ore and the price has almost dropped 40% recently which has also caused the AUD to weaken slightly.
Last night the RBA released their minutes from their last interest rate decision. It strengthened the Aussie slightly as they gave no indication into future interest rate cuts which the markets were expecting. If I was requiring buying Aussie Dollars I would see how things unfold over the next month as although the RBA did not mention anything about rate cuts analysts believe that by the end of the year we will see a 0.25% cut. This would theoretically weaken the Australian dollar and may just help the pound strengthen to the mid 1.50’s.
If you are looking at selling AUD to buy any northern hemisphere currency I would consider selling your position as soon as possible. While the Aussie Dollar is still at extremely strong levels by the end of the year there may be a slight reverse on the rates. If you have a requirement and would like to speak with me regarding your options on securing a rate before you need your funds you may email me at firstname.lastname@example.org with your contact details and I will call you to discuss all the options that are available to you.