GBPAUD rates continue to remain volatile as the risk appetite of traders impact the value of the the AUD. As returns from investments within Australia are so much higher than the “western world” many investors put money in Australia in the hunt for a better return. The amount of risk that they open themselves up to however changes depending on breaking news and a changing forecast. This can be impacted by anything from Flooding within the UK to central bank policy in the US. Wednesday evening we saw such an event which pushed the value of the AUD down. The news came from the FED, which is the central bank in the US, when they released their latest meeting minutes. In it the members of the FED hinted that they were unlikely to start increasing interest rates within the US when their unemployment reaches the low of 6.5%, this was initially the indication they had given. As a result risk appetite changed globally and we saw a lot of investments in Australia be unwound or reversed. This large swing in money movement and when millions of dollars was taken out of Australia impacted the value of its currency, weakling its demand and therefore its value.
It has provided clients that are looking to invest or buy property in Australia with an opportunity to get the high levels we saw a few weeks ago, over 1.8650. These SPIKES in the market are often short lived so make sure to register your interest for the next one. Simply email [email protected] with the title SPIKE ALERT along with your contact details.
If you would like to discuss the market forecasts in more detail or even get access to our live prices and quotes please feel to contact myself – STEVE EAKINS – via email at [email protected] or by telephoning the number on this site.