We have seen GBPAUD rates gradually move downwards this week, this may be due to risk appetite increasing following the US election and investors choosing to flood back into the Australian Dollar to take advantage of the additional yields being offered.
This trend may continue into next week as we have a continuous stream of data coming out of Australia, most of which is likely to be positive. On Monday we will get an indication as to the strength of the Australian housing market when the new home loans figures are released, on Tuesday we find out how the financial sector is feeling with the results of Septembers Business Confidence data and on Thursday we have inflation data and the latest number of new car sales (this is a very good barometer of how confident the general public are in the future of a county’s economy).
Even though the Australian Dollar has been hampered recently by slowdowns in Chinese economic growth it is still seen as a good investment during times of general economic calm across the globe as it has a fairly stable economy and offers good levels of interest on investments. I think over the next few weeks we may continue to see the Autralian Dollar make gradual gains against the Pound and for this reason it may be worth those of you with short to mid-term Australian Dollar requirements considering a forward contract. This contract type allows you, for a small deposit, fix exchange rates where they are now for anything up to 2 years ahead.
For more information about the type of contracts we have available that can be tailored to suit your specific circumstances or if you just have a question about the currency markets feel free to email me at [email protected] or call me on 01494 787478.