The recent volatility on GBP/AUD rates looks set to continue, with the AUD finding further support during Tuesday’s trading. With GBP/AUD rates moving back towards 2.12 earlier today the recent volatility on the pair looks set to continue. Many clients are now questioning where the pair will head next and regular readers will be aware that due to the additional volatility seen on GBP/AUD rates compare for example to GBP/USD rates, it makes forecasting, particularly long-term, very difficult indeed.
However, that doesn’t mean that we cannot identity and execute trades at better levels than seen today, whether you are buying or selling AUD. Whilst the general trend of late has been AUD weakness there have been opportunities in the form of short sharp burst, which if monitors and actioned upon, could provide AUD sellers with a short term ‘window of opportunity’.
The general consensus regarding forecasts on GBP/AUD indicate that the AUD may struggle to make any sustained inroads in the short-term, certainly whilst there is a continued slow-down in the Chinese economy. China are Australia’s largest export partners and any slowdown in this sector is a major concern for Australia, who are heavily reliant of the export of their vast supply of raw materials.
Whilst I do expect improvements in China over the coming months I would be surprised to see GBP/AUD rates head back below 2 anytime soon but it does seem as though the AUD has finally found some support around the current levels.
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