The Australian Dollar has dropped considerably this year against Sterling by as much as 35 cents from the high to low during 2013. With a number of interest rate cuts by the Reserve Bank of Australia and with recent RBA comments that there could be room for monetary intervention we could see a further weakening for the Aussie as we end of the year. Indeed, the Australian economy is heavily reliant on the growth in China which has slowed this year. China buys a huge amount of natural resources from Australia and if they continue to slowdown we could see problems ahead for Australian growth.
This week we have seen GBP AUD exchange rates hit 1.80+ a number of times but it has yet to really break through this large level of resistance. Even the figures out form the UK regarding the NIESR data which confirmed UK GDP at 0.8% yesterday did little to push the Pound up against the Aussie. Could this be the opportunity for the Aussie to stay at these levels for a few days before we break through 1.81. Personally, I feel there is further room for Sterling strength against the Australian Dollar so you may wish to take advantage of these current exchange rates if you’re selling Australian Dollars.
The Kiwi Dollar has also weakened recently and could hit 2 to the Pound again soon and with an interest rate decision later tonight if there is a rate cut we could also see a huge sell off from riskier currencies which would include the AUD.
There is a lot of employment data due for tomorrow down under which if negative is likely to weaken the Australian Dollar.
If you want to make sure you’re getting a better exchange rate than your bank please contact me directly for a free quote Tom Holian [email protected]