The Australian Dollar could be in for some further weakening over the coming months as the outlook gets worse and the markets remain uncertain as to when the Fed may bring in tapering. Predictions are that the US could begin tapering in December but this is by no means going to happen.
When it does finally happen we could see fears increase of a global slowdown which could in turn weaken the Australian Dollar.
The Aussie is one of the currencies that is often negatively affected by the uncertainty as investors generally buy the Aussie when risk appetite is high. At the moment investors are looking for safe havens and therefore avoiding the Aussie. With interest rates in Australia currently sitting at 2.5% there is an expectation that we could see at least one more interest rate cut before the end of 2013.
If the above does happen I would expect to see Sterling improve against the Australian Dollar so if you’re thinking about making a currency transfer and want to ensure you are getting the best exchange rates feel free to contact me directly for a free quote Tom Holian [email protected]