Merry Christmas, not sure about you but I am finally starting to feel in a Christmas mood!
An early present for Aussie buyers today, GBPAUD spiked further above 1.90 as the Australian currency came under renewed pressures from speculators and traders. Simply put the Aussie is now being viewed as majorly overvalued and most analysts now expect the rate to weaken further in the New Year. Some of the key reasons for this monumental shift include:
– Sharply falling Oil Prices and commodity prices in general. The Aussie economy is heavily dependent on high prices for the raw materials it supplies to the world.
– Falling interest rates in Australia. With their base rate having been slashed in recent years to increase growth and combat the slowdown in China and the falling price of commodities (eg Iron Ore), the Aussie has become less attractive for investors.
The likelihood is this slide will continue into next year, if you haver Aussies to buy or sell making some plans now could save you a lot of money in the future. If you need to speak to someone about your options and strategies please contact me Jonathan jmw@Currencies.co.uk.