Overnight Chinese data has again impressed helping the Aussie to new highs against many of its peers! The Chinese trade balance increased from 19.6 bn to 31.6 bn and exports rose 14%. Is this the sign of an economy in decline about to suffer a hard landing? Is this even a sign of an economy about to suffer a soft landing?!
Iron Ore prices are very strong and the Aussie touched new highs against the JPY and is only a few cents from the all time high against sterling.
It looks like for the time being anyone buying Aussie dollars will have to accept a lower than hoped for price. But what for the longer term outlook? Well the current levels are a reflection of the current trends and themes in the market place. The Australian economy well supported with strong mineral resources and a obviously still buoyant Chinese partner is an easy match for the UK pound, representative of a weak economy with low growth prospects and looming disasters in the form of a loss of triple A credit rating and a triple dip recession.
The future does not look bright for AUD buyers, but for AUD sellers this looks like a great time to at least prepare to enter the market.
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