The Australian Dollar has traded with uncertainty this week, following a surprise rate hold by the Reserve Bank of Australia. Markets have started to speculate that the impact of a rate cut is not benefitting the Australian economy, potentially indicating a period of no cuts. However, I personally feel that we will see another cut but realistically not until late spring / early summer.
On the Sterling side of the currency pair, the UK General Election is starting to gain momentum, with international investors already starting to voice their concern. Whichever way you look the Government that is formed (following a certain hung parliament) will have big decisions to make. I therefore would be tempted to buy Australian Dollars sooner rather than later, as chasing the 2.0 level would require a strong Pound – the chase could cost you a lot more than the gain would be worth!
If you are selling AUD, I’d be inclined to take advantage when the market moves back in to the 1.80s.
If you have a currency exchange requirement, please feel free to get in touch. The direct line to the trading floor to discuss you requirement is 01494 787 478. Alternatively you can email me – AJB@currencies.co.uk