As my colleague Tom alluded to below, many analysts expect the Reserve Bank of Australia to cut interest rates at its next meeting scheduled in the first week of October. This may be good news for anyone buying dollars as I personally feel this will hold back any short term gains for the Aussie and I would expect GBP/AUD to head towards 1.60 and AUD/EUR towards 1.25. I am more confident that any losses against the Euro will be short term as I am still less than convinced, even with recent positive tones coming from Europe, that a resolution will be found to the euro zone debt problems. Yes the bond buying program to be introduced will give a much need influx to the European countries that most need it (ie Spain, Italy, Greece et al) however how long til the mud sticks? To me it is not sustainable and the ECB cannot continue to simply throw more money at the problem and I am sure at some point the problems will resurface and the Euro exchange rates affected as a result. As for GBP/AUD, I personally see a the market range bound between 1.56-1.58 and a long term see resistance at the 1.60 territory, however should you be buying the Aussie in the coming weeks rates, as they are, still represents a decent return in my opinion. Since the beginning of August the pound has gained some 6% – surely not to be sniffed at and a good return in anyone’s eyes.
To take advantage of the current spike against the AUD or to discuss your transfer in more detail then please do not hesitate to contact Mike direct on [email protected] or call 01494 787478. As a specialist currency broker there are a number of different contracts individuals and corporate clients alike can utilise to gain the most from their currency trade. As part of the service I can happily run through the best contract for you and pass on my independent view on the market to help you make an informed decision as when is best to execute your trade. Contact Mike on [email protected]