If you need to buy Australian dollars I think it is really worth capitalising quickly as the rate is up at a 6 year high but has started to fall. Some not so great UK data and improvements in risk appetite will easily see this currency pair drop back below 2 or 0.5. Can you afford to take that risk? If you need to buy Australian dollars and want to get a 2 in front of your rate there is only one way to ensure you don’t miss out and that is to buy before it dips back.
The expectation is that a Greek deal will cause the AUD to find favour and the currency will strengthen. The Greek deal is important because global uncertainty has a big impact on exchange rates. If investors are worried that there will be global economic problems (eg Greece leaving the Euro) they will be less inclined to hold a currency that would come under pressure in such a scenario eg the Aussie. They will prefer a more stable currency like the US dollar or sterling.
We cannot tell you what will happen in the future but most analysts are expecting the Greeks and their partners will come to some form of arrangement to prevent Greece being forced out of the Euro. Whether this is today or in two months time, we expect the show will go on for Greece and the Euro. Therefore the Aussie should strengthen back at some point so if you need to buy Aussies in the future why not make some plans now so you don’t miss out?
For more comprehensive information on what moves exchange rates and how to get the most from your currency exchanges please contact me Jonathan on [email protected]