The Australian dollar continues to be pushed back against the major currencies like the US dollar and sterling as these currencies find strength on the back of improvements in their respective economies. Whilst the Aussie had strengthened from the decision by the Reserve Bank of Australia to not cut interest rates, this was shortlived and in particular against sterling those moves had been very quickly eradicated as investors feel cuts are on the horizon.
Just when such a cut will be is difficult to tell but with continued uncertainty in China and the pound rising it appears if you are going to be looking to sell the Aussie for the pound moving sooner rather than later is the best course of action despite being very painful. The market is pricing in UK interest rate rises and Australian interest rate cuts. With such a scenario likely to play out in the next couple of years it is difficult to see this pair staging the recovery that many selling Australian dollars might be wishing it would.
For more information on the best time to exchange AUD for pounds or indeed Euros please email me Jonathan on [email protected]