If you’ve been reading my blog posts for a while you’ll notice that my general feeling is that there is further bad news to come for the Aussie Dollar sending it weaker than it is at the moment. However, over the last two trading sessions we have seen positive movements for Aussie Dollar against Sterling mainly triggered by some good data releases in the US.
Minimal trading volumes have also helped to cause larger movements than during a typical trading session which is also part of the reason for the short term strengthening. Longer term I think we’ll see further losses for the Australian Dollar as interest rate cuts down under seem as if they’re on the radar for the RBA as we begin 2014.
According to a recent article on the BBC 93% of 28 economists think that UK interest rates will be kept on hold during 2014. Putting my neck on the line I think we’ll see a potential rate hike towards the end of 2014 if the UK economy continues to have a good year and beats current growth forecasts.
If you have a currency requirement coming up and want to compare exchange rates against your bank feel free to email me directly Tom Holian [email protected]