It has been a turbulent week for GBP/AUD with high low rates ranging from 1.5375 to 1.5150 – but where now for the Aussie I hear you ask? The UK economy has taken a bit of a battering this week culminating in poor GDP estimates this afternoon suggesting the dreaded’triple dip recession’ could be on the cards. This is obviously not going to do any favours for the pound and for the time being will keep any gains against the AUD to the downside. Any short term buyers of the dollar may look to secure their position sooner rather than later.
Longer term I am still a strong believer that this year should be slightly more positive for GBP/AUD. I do feel however that any losses for the Aussie will be down to AUD weakness as opposed to GBP strength as early indicators from the UK suggest 2013 could be a rocky road to recovery. That in mind expect little change from GBP/AUD short term (there are some great opportunities for AUD sellers at the moment) however if you have the advantage of time then I feel the rates may tick back towards 1.55-60 territory later this year as I would expect the RBA to cut interest rates in Australia before the end of Q2 and feel the Australian economy may come under some pressure in the coming months due to falling demand in China. I also feel the US debt ceiling deadline in February may cause a sell off from the relatively risky AUD back to lower yielding currencies such as the Pound and USD, as a result I would hope to see some better opportunities for AUD buyers in February and beyond.
Should you wish to discuss current market trends or to find out the best contract type for you then please contact me and I will happily guide you through your options. There are many contracts available that enable clients to take control of their exchange requirement, whether this be the use of a stop/loss or limit order or booking forwards to secure funds without full availability of funds. Please contact the office on 01494 787478 or email me to run through the currency service we provide and see how we save clients thousands on their foreign exchange.
Please email Mike at [email protected]