The Australian Dollar has moved by over 2% this week so far, making a difference of over AUD $7,100 on a £200,000 purchase. It goes to show how quickly the market can move and how valuable appointing a broker to review your situation can be.
However, I expect this volatility to continue over the next week as Australia holds their Government Elections. Currently the two parties seem rather close, creating a risk that a government could fail to be formed. If this was the case expect AUD weakness, as a coalition government could be required. (FYI – When the UK formed a coalition Government GBPEUR rates moved by over 5% in less than 10 days.) I personally think a coalition government is unlikely and that one of the parties will win outright. Both are fairly similar with economic policies however the certainty of a new government being formed will probably result in AUD strength.
We also have SYRIA US vote early next week. Any confirmation of potential military operations will affect traders appetite for risk and therefore the demand for the AUD and will against affect the cost of the dollar. My personal view is that any steps forward will make the AUD cheaper to buy and more expensive to sell.
Over the weekend the G20 meeting also takes place, even though Syria is a topic the media will focus on it is actually a talking point for the dinner tables in Russia. The main topics are tax avoidance and growth concerns in the developing world. These topics could change the global demand for currency and global growth which again will have an impact on the appetite of traders. Personally I think this is a small driver and nothing significant will be released but certainly something to consider.
Also there is a lot of Economic Data coming out from China on Sunday evening Monday morning. China’s economic situation has a big impact on the strength of the AUD as they are so closely linked with trade of Australians raw materials. The data is expected to show an improvement probably having a positive impact on the dollar and making it more expensive to buy,.
As you can see from the above we are about to enter an incredibly busy period for the AUD. Timing of any trade and knowing the latest information with be absolutely key in getting the best price. If you are in the market trading the AUD or any other major currency feel free to contact us, we offer an award wining service with better exchange rates than the bank. Otherwise, simply put, we would not be in business so I am 100% sure we can save you money. Contact us today on the normal telephone number or email me direct, Steve Eakins, at [email protected] I can register your interest for SPIKE NOTIFICATIONS, RATE ALERTS, plus give you access to our live trading prices and current forecasts.