Sterling has continued its recent strong run against the Australian dollar with gains now over 6% since the beginning of August. Much of the losses are down to a recent fall in manufacturing output and growth forecasts for China and the recent fall in commodity prices. With Australia heavily reliant on its core commodities a fall in demand and price has a major impact on Australia’s economy and some forecasters are predicting a tough ride for Australia heading into the New Year. Personally I think this trend may well continue, although should confidence come back to the market following any positive announcements from the European Central Bank tomorrow, then in fact you may see a short term drive towards the higher yielding currencies, including the Australian Dollar tomorrow afternoon. This could create a short term opportunity for AUD sellers as I personally can see a drive towards the 1.60 territory in the longer term, although a 6% swing in the past month must represent a good return for any buyers of the Aussie dollar.
To discuss my views and the recent market trends then please do not hesitate to contact me (Mike Vaughan) and I will happily run through my thoughts and views on current market conditions. As a specialist currency broker a number of tools can be utilised in an attempt to maximise your currency exchange and I would be more than happy to run through these and the service I provide in more detail. Savings when using a broker can be well in excess of 2-3% when compared to the banks so please contact me directly on [email protected] or call 01494 787478 to discuss the service in full.