Well who would have thought a few months ago I would be sitting here writing about the Aussie being at a 3 year low against GBP and slightly smug from an Ashes victory. Australia is not quite untouchable after all!
If you are planning a foreign exchange transfer involving the Aussie in the future it is worth being aware of the volatility the currency can suffer from. This can make or break dreams as usually once the Aussie starts to slide in one direction, there is little that can be done to stem the flows of money.
Important events coming up soon for the Australian dollar are the RBA Minutes, Reserve Bank of Australia Minutes which will provide insight as to what extent we can expect further rate cuts which will weaken the currency. Last meeting we learned that there is definitely scope for further cuts so you have been warned that we may yet see the Aussie weaken further in October and remain weak for September. If perhaps you have sold an Australian property and need to bring back the funds to the UK holding may unfortunately not be the best course of action. Small fluctuations in the exchange rate can make a big difference in the amount of currency you receive so to discuss all of your options with a specialist please speak to me Jonathan on [email protected]
The prospect of QE ‘tapering’ is another big driver for the Aussie. Known as a ‘riskier’ currency it is susceptible to sentiments on the global economy. The prospect of the US Federal Reserve halting or reducing (tapering) the amount of money they are seeping into the financial system is bad news for riskier assets as it means with less ‘cheap’ money around investors will seek more certain returns. The tapering is scheduled in September so this is yet another reason the AUD looks set to remain on the ropes.
For a free, on obligation discussion of your situation please contact me Jonathan on [email protected] even if it is just some Aussies looking to blow off some steam! Haha I am sure the winter test will prove very challenging for the Brits… We write this blog for information for our clients and new clients alike. We aim to not only save you money by offering better rates than you can currently achieve, but assist with the actual timing of your exchange too.
Hoe to hear from you soon