Buyers of Australian Dollars have taken advantage of two good spikes over the last 2 trading sessions. GBP AUD opened in the 1.82 region and spiked to a day high (so far) on the back of a strong US GDP figure, enticing investors to take their funds out of the risky commodity currencies and in to the safe haven US Dollar. The belief that the Australian Dollar is still on the slide is very strong, with Australia’s primary export (Iron Ore) under immense scrutiny. Iron Ore is at record lows currently, as Chinese steel factories are struggling to sell their produce to construction firms.
Looking ahead, I think based on comments from the RBA (The Reserve Bank of Australia) interest rates could be cut again. The RBA have indicated that rates could be cut from their current 2.5% as they feel it will stimulate the market further. Therefore if you are looking to SELL AUD, I’d get looking to exchange sooner rather than later. Last week saw a window of opportunity for AUD sellers at sub 1.80 levels. If you held off in search of a rate nearer 1.70 than 1.80 then you have potentially missed the boat for now.
If you are buying or selling AUD, please feel free to drop me a line to discuss – the direct line to the trading floor is 01494 787 478. Alternatively you can email me on AJB@currencies.co.uk