The GBPAUD exchange rate has swung again over the last few days. A majority of this has been due to changes in the market from China. The Australian economy is hugely dependant on the exports of its raw materials and as China is the largest buyer, any change in China’s imports and exports impacts the value of the Australian Dollar. What we have sent his week is an increase in activity from China plus the central bank of China stimulate the market, all rather positive and therefore the demand along with the value of the AUD has climbed. Bad news for any AUD buyers but really putting a smile on anyone with AUD to sell.
It is my view that if you are trading AUDGBP this week I would move today. You have gained by over 2 cents and with UK unemployment tomorrow expected to show an improvement the tide could quickly change once more. If you are a AUD buyer, however scary it is to see levels fall, I would hold. I think you will get a better level later this week buying compared to where we currently stand.
Longer term, next week onwards, I think levels will remain volatile and with that opportunity will come. There is however less economic data as we enter the second half of the month so making a predication becomes more “challenging.” If you are going to hold then this is the time to deploy useful FX tools like SPIKE NOTIFICATIONS and RATE ALERTS. These allow you to put a net around the market so you can be notified of any changes. In turn allowing you to be kept up to date with movement without being stuck to the screens. You can also employ us here to be your eyes and ears on the markets looking for an opportunity in your favour.
For more information on the above or any other currency topic feel free to contact myself Steve Eakins via email at [email protected] This is my direct email allowing me to reply personally to your questions.
I look forward to hearing from you.