Just like the dire performance so far of the Australian cricket team on their Ashes tour of the UK, the Australian currency is also suffering from a poor performance. It is looking more and more likely that the Aussie is going to remain on the back foot for an extended period of time. Uncertainty as to how the slowdown in China will impact global markets will weigh on the Aussie and it is highly likely we will see further interest rate cuts by the RBA which will impact the currency.
Even with the significant GBP weakness of late, GBPAUD remains very close to 1.70, a mark of just how weak the Aussie is. The major sell off of recent months is not showing any signs of being reversed and I would not be surprised to see the rates soon comfortably in the 1.70’s and from there? Well who knows!
Despite the turmoil of recent months for the Aussie, it is still holding a large portion of the dramatic gains made since the financial crisis. Rates historically were always in the mid 2’s so if you are selling Australian dollars to buy GBP, you may have missed the boat on the best levels but you are still at a very good rate. For a free, no obligation discussion of your situation buying or selling Australian dollars, please contact me Jonathan on [email protected]
This week is shaping up to be an extremely busy one for rates and GBPAUD could easily get caught out with some sharp selling. Tomorrow the Federal Reserve meet to discuss US economic policy which may well impact the Aussie as we see any indication as to whether or not the Fed will be scaling back their QE programme. Then Thursday we have the UK Interest rate decision and ECB decision. Friday we then have US Unemployment data plus the RBA decision next week. All in all there is plenty to move the market on the aussie so if you are considering an exchange and want to get the best rates, please contact me Jonathan to discuss further.
You can reach me on [email protected] or call 00 44 (0) 1494 787 478.