The Australian Dollar is an incredibly volatile currency currently, following fallout and speculation post the RBA (Reserve Bank of Australia) Interest Rate cut. The Reserve Bank of Australia surprised a large proportion of market analysts by cutting the base rate of interest on Tuesday, prompting Aussie sellers to rapidly sell their position. The fear is that this cut in the first meeting of the month leaves the door open for at least one further cut this year. As with any currency pair, it is always vital to look at both sides of the story, so Australian Dollar buyers would be wise to look at taking advantage now before the impending UK General Election in May. As we saw in both September with the Scottish referendum, and January with the Greek election, most markets are moved substantially by political uncertainty. Not only on the outcome, but the build up too. Therefore with the Australian Dollar at 6 year highs, I’d be inclined to get my Aussies Bought now to avoid the market slipping back.
It is also worth noting that the key monthly data piece for the US Dollar is released tomorrow afternoon. The Nonfarm Payroll figure swings the US Dollar exchange rate, as it is very hard to predict, generally ending up with investors moving money in and out of the Aussie. This further adds to the potential for a currency swing.
If you have an Australian Dollar requirement, please do feel free to get in contact. I am happy to discuss all aspects of any exchange (however big or small). Please ask for Andrew Bromley on the Australian Dollar desk on 01494 787 478 or email me on AJB@currencies.co.uk