Sterling vs the Australian Dollar has been flirting with rates just above 2 this week on a few occasions without a sustained breach. The psychological rate is also 0.50p for each AUD so again difficult to remain above.
The exchange rates have been triggered by the uncertainty surrounding Greece with investors shying away from riskier currencies including the AUD as well as some recent poor data down under.
The fall in both oil prices and iron ore over the last few months have really started to have a negative effect on the Australian economy. Investment in the mining industry has massively dropped this month and Chinese demand has fallen significantly compared to the last few years.
With the RBA having cut interest rates earlier in the month although I don’t think we’ll see another rate cut at Tuesday’s meeting I do think there could be further hints that another one could happen during the next few months which could cause further weakening of the Australian Dollar vs Sterling creating excellent opportunities to buy AUD.
Australian GDP is also due out next week on Wednesday and I think we could see a fall providing an excellent opportunity to buy Australian Dollars towards the middle part of next week.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]