We were expecting an insight into the flow of goods in and out of Australia overnight but the release was delayed. . The AUD has been one of the worst affected by the recent saga of negative economic forecasts emanating from China. A large consumer of their exports, the Australian Dollar has continued to suffer as China’s growth is revised downward. Yet there could be a silver lining.
The RBA has been extremely proactive in weakening the value of its currency to make its exports more competitive, precisely because demand has been weakening in China. Exports came in positively for last month when they were released later in the day. So even though the global landscape has changed, the weakening of the AUD may be seen to have long term benefit to the Australian economy.
However, this was overshadowed by the release of lower than expected retail sales figures. This counteracted the recent ‘settling down’ of AUD rates and we’ve since settled into the low 2.17’s by the close of UK trading. This wasn’t enough to cause a massive crash in AUD rates, as low retail sales are expected during their winter. What wasn’t expected was an outright contraction in the sector.
As the first part of this article notes there are various forces working upon the AUD at the moment. The only absolute certainty at the moment is that the rates to buy AUD have been the best in years, and personally I would be looking to take advantage of this sudden spike up. Why risk a significant fall when only relatively lower gains can be made? Email me overnight on [email protected] and quote this article to receive a commerical rate of exchange on any personal transfers and some tailored advice on your situation.