The price to buy Australian dollars has fallen over the last 24 hours as data from the UK strengthens the Pound. This came from a surprising increase in Inflation data from the UK which increases the likelihood of an interest rate hike, increasing investment in the Pound and making it more valuable. This gives AUD buyers the best opportunities seen for years as rates are currently at the top of the range we expect to see for the remainder of the month. As a result if you have AUD to buy within the next fortnight it may be prudent to buy now at these highs to avoid the disappointment.
Over the next fortnight there is little economic data due which will have an impact on the forecast for either economies hence the expectation is that levels will fall back as traders take their profits out of the market.
Moving forward, through the rest of the year I have the view that buying AUD will become cheaper still. As we continue to see the real picture in China come through this is bound to have an impact on both the demand for AUD exports and the value of these commodities. I would not be surprised to see GBPAUD rates over 2.20 before the year end.
Great news for AUD buyers however AUD sellers should be very wary. So if you have AUD to sell in the next 3 months I would urge you to look at your options, you can use Forward contracts to help even if you don’t have access to all your funds at this point.
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