The contrast in the current weather in the UK and Australia seems to sum up the current trends for GBP/AUD. As the UK sees a heavy covering of snow and temperatures dipping towards -10 in some places, the mercury in Australia has been tipping the scales into the 40’s and certainly the Aussie dollar is hot right now. This morning we have breached through the 1.50 territory creeping closer to the the highs of 1.47 seen in August last year. For me this has to be a great opportunity for any AUD sellers as I still firmly believe this pairing is due a correction. The market has currently priced in poor expectations for UK GDP data on Friday (I think this has been overpriced and we may see a slight rebound following the release) and investor confidence since the turn of the New Year seems to have taken a boost following the ‘Fiscal Cliff’ agreement, will this last?
Personally I think it is only a matter of time before the Euro zone problems return and as we head towards the US debt ceiling deadline next month I feel trends will reverse as investors unwind a number of their positions. I also feel the Reserve Bank of Australia will continue with their monetary policy throughout 2013 and would expect a series of rate cuts to devalue the AUD. I think if you have time and you have a need to buy AUD I would adopt a ‘wait and see’ policy as I think there will be opportunities. Those selling may wish to strike while the iron is hot.
To discuss my views and opinions please do not hesitate to contact the office on 01494 787478. Alternatively please email Mike at [email protected]and I will happily run through the service and market trends. I will also be happy to provide you with a live trade price to see what savings I can make you when compared to your current provider.