When will GBPAUD hit 1.70?

AUD GBP Struggles at the 0.5350 Price Level

Another incredible day for those buying Australian dollars as fears over the outlook down under combined with GBP strength helped GBPAUD rates to climb much higher breaking fresh highs. I think that in the coming months GBPAUD will only climb higher so if you are considering selling AUD to buy GBP, you really should be making plans to sell them quickly to avoid disappointment! The Aussie is still enjoying some of the best rate in years against the pound and euro.

Further interest rate cuts and declines in global stock markets indicate further AUD weakness in the short term. Fortunately we can help plan and manage your exposure to these volatile times so that you do not suffer unnecessarily. Forward contracts are an extremely useful way to protect yourself from market fluctuations. These allow you to fix a rate of exchange for settlement in the future. So for example if you were selling or buying a property in a few months and not expecting to have the funds until then, a forward contract would allow you to fix the exchange rate until the date the funds became available.

This guarantees you know how much the property will be worth when sold. We are seeing lots of people who have sold Australian property only to realise the rate is significantly lower now than when they agreed the deal. the expectation is that this trend will continue and a forward contract is the best way to reduce your losses in this scenario. For more information on just how this works, please contact me Jonathan on [email protected] 

Next month a further rate cut by the RBA is quite likely and this gives rise to further AUD weakness. If you are consdering an exchange in the short term we are extremely close to 1.70 and these levels should not be taken for granted. For a free, no obligation discussion of how it all works please contact me Jonathan.

I hope to hear from you soon,

Jonathan