The Australian dollar has continued to fall overnight due to further worries over the Chinese economy slowing down. Figures released early this morning showed year on year growth improving whilst the quarter on quarter figure was less than expected. The losses on the Aussie are expected to continue this week, particularly against the pound which is likely to strengthen with good economic data forecast.
Four Important Reasons the Aussie is likely to suffer further
– Fed QE (reducing QE will weaken the Aussie as investors seek less volatile shores)
– Falling rate of Chinese economic growth (less demand for Aussie raw materials)
– The RBA and Glenn Stevens want a weak Aussie (they have said so)
– Worsening economic outlook (Employment fell over Christmas)
Understanding market forces and the forecast is key to understanding what kind of rate you can expect. With sterling strengthening in recent weeks and more good news expected this week moving sooner really may be a good course of action. Limiting your losses via one of contract types could be the perfect solution.
If you need to (or will have to) make payments of large volumes of currency you really should be contacting us. We are currency specialists who offer much better exchange rates than the banks and pride ourselves on a very proactive customer focused approach to keep our clients updated and informed of what is happening. This will allow you to make an informed decision armed with useful information.
For more information please contact me Jonathan on [email protected] or even call (+44) 01494 787 478.