Personally I feel AUD is currently chronically undervalued. China has far too much influence over the value of AUD with the RBA constantly weakening the currency so Australia’s raw materials are still appealing to their Chinese trade partners.
I also think that despite China’s growth being in decline it is still overestimated with rumors of shadow banking and fake invoicing rife. I do not feel a weak Aussie Dollar is going to substantially boost raw material sales although it may keep Australia the business instead of the Chinese going elsewhere.
Although GBP/AUD has dropped from the 6yr high of 2.09. It still sits at 2.06, a very attractive purchasing level if you have an AUD requirement. If I had an AUD need later down the line I would be considering a Forward contract to get the rate locked in.
Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at [email protected] or call on 01494 787 478 and ask for Daniel Johnson.