This is a question I am being regularly asked by anyone buying Australian dollars with sterling. My response is often ‘Why didn’t you buy when it was 1.90?’ and their response ‘Because I wanted it go higher’ highlights the psychological problems of buying currency! Namely we always want a little more. There is an inherent risk of course that being greedy leads you to end up with nothing… or less than what you had of achieved if you had been a bit more sensible.
Getting the absolute top or bottom of the market is impossible!
This should be obvious but still many people hold out on their currency purchase expecting rates to magically back to the highest it has been. This is why it is very important to understand what is actually going on in the market and what is driving your rate. If you need to make a currency transaction in the future buying or selling AUD why not get in touch with me Jonathan on [email protected]. Holding out in blind hope that your rate will be reached is the most dangerous thing on exchange rates, speak to me to find out what is realistic or not!
The outlook on the Australian currency has become slightly more positive recently with the RBA (Reserve Bank Australia) saying they will not be cutting rates again in the future. This means that you shouldn’t bank on big improvements for buying Australian dollars, the market is much more neutral and subject to any unexpected news we will probably remain range bound for the moment.
Friday’s US Jobs data is potentially the biggest news, if you have a currency requirement soon involving the Australian dollar making some careful preparations ahead of the news is probably the best thing to do.
We always beat rates of other companies and the banks so to learn more about properly managing your exposure to the currency markets, please get in touch.