The best Australian dollar rates for three years! Three years! Many had actually written off even getting rates back above 1.60 let along 1.70. These are some very interesting times for the GBPAUD and EURAUD rate, the next big event will be the Federal Reserve decision next week. This could really help those buying AUD if the Fed do decide to ‘taper’ their QE purchases.
The AUD is seen as a riskier asset so if the Fed do not turn off the QE taps the Aussie will weaken as investors pull funds from this asset. Conversely the AUD may strengthen if the Fed do taper. Investors will will be concerned about the outlook for the global economy and will look to move funds to ‘safer’ assets like sterling and the USD.
All in all the current excellent levels should not be easily dismissed. For a full discussion and overview of the current market please contact me Jonathan directly on [email protected]