The Australian Dollar has had the worst month in a few months against the Pound and has hit the lowest level against Sterling for the whole of 2013. Investors are nervous about what is happening down under as the RBA has made comments that monetary intervention including artificially weakening the currency in order to make exports more competitive.
As China’s growth starts to slow this means less resources are in demand and the economy in Australia feels the effects. As China is Australia’s largest trading partner any negativity could have a serious impact on Australian Dollar exchange rates. RBA Governor Glenn Stevens has mentioned the possibility of intervening last week which has weighed on the strength of the Aussie Dollar.
During the credit crunch era of 2007 and 2008 the RBA has admitted that they intervened in the foreign exchange market so the precedent has already been set from before. The previous movement was an attempt to stabilise the disorder that was taking place at the time. During 2008 the Aussie Dollar lost as much as 40% against the US Dollar.
I’m not claiming that we’ll see such a movement but there is room for a quick changing in the exchange rates if the RBA does attempt to influence things so if you’re concerned about making a currency transfer to buy or sell Australian Dollars then get in touch for a free quote Tom Holian [email protected]