The Australian Dollar has gained a consistently this week as the trend changes for AUD buyers. Previously many had hoped and calculated that another visit to 1.70 was a possibility, however many now believe that GBPAUD rates will fall down to 1.65 rather than climb once more. Currently we end the week with the Australian Dollar reaching a 2 ½ month high even though it has been one of the worst performing currencies this year. This has presenting a good opportunity to buy sterling or euros with the AUD in the short term and lock in a significant saving compared to only 2 weeks ago of over 3 cents.
The reason for this change in views has been a combination of news from the UK, Australian and Australia’s largest trading partner China. Only this morning we saw Chinese Economic data show that their economy growing at 7.8% for the year far more than many others, this growth will need to be feed by raw materials provided by Australia which will therefore boost their economy and strengthen the AUD. The Reserve Bank of Australia appears to be at a turning point following the announcement that interest Rates are unlikely to be cut in the near future, strengthening the dollar further. Lastly the UK side of the coin seems to be weakening; following the “feel good” feeling around the Pound last month data have not continued the same level of gains seen previously creating weakness.
All this points towards more AUD strength making it more expensive to buy in the near future. Saying the above however rates of exchange never move in a straight line, meaning that there will be opportunities for buyers and sellers if they time the trade well. This is a service that we offer here; helping people time their trades to get the most from the market. For example this coming week we have AUD – Consumer Figures, GBP – Public Sector net borrowing, GBP – Bank of England Minutes, GBP – GDP figures updates. All of which will have an impact on the markets creating opportunity for the well informed to get the best prices.
If you have an interest in AUD, GBP or any other currency please feel free to get in contact for more information. On top of this information you can be comfortable in knowing that our award winning exchange rate will save you money compared to your current provide; bank or broker, otherwise we would simply not be in business. Contact myself – STEVE EAKINS – via email at [email protected] or call the number on the top of this page.