With China’s growth expected to drop to the lowest rate in a quarter of a century, its no surprise that the Asian Development Bank has lowered growth forecasts. As discussed in previous blogs the Australian economy heavily relies on China, because China are their largest trading partner. Therefore until the Chinese economy shows signs of growth, the dollar will continue to struggle within the currency markets.
In recent weeks the Aussie made a temporary gain against sterling, due to Tony Abbott being ousted and Malcolm Turnbull being elected as Prime Minister. For clients who have been analysing GBP/AUD currency pair and are holding onto Australian Dollars, I hope you moved when GBP/AUD dropped. If that’s not the case, I believe holding onto dollars and trying to ride it out is a major risk. Therefore I would put a strategy in place today and trade at the next available spike in your favour.
For Aussie buyers, depending on your timescales, will depend on the advice I would give. I recommend any new or existing clients exposed to buying or selling of Australian Dollars, to drop me an email directly with your requirements firstname.lastname@example.org or alternatively call into the office today 00 44 1494 787 478 and ask for Dayle Littlejohn in order to put a strategy in place and also a free quote.