The minutes from the latest RBA interest rate decision showed that there are still growing concerns over the Chinese slowdown and how it may have an effect on the economy going forward. Alongside this we are seeing less investment in the mining sector which is starting to impact that side of the Australian economy.
The positive news was the drop in unemployment figures which led to a little light at the end of the tunnel but in general I feel like the outlook is not particularly great.
Comments mentioned that it would be highly likely to see a cut in interest rates in 2016 however they did not indicate how far into the year these were expected to happen.
Personally I feel that the Australian Dollar will be in for a rocky ride at points during 2016 however there may be a few fight backs along the way and with it now being doubtful that we will see a cut this year the move above 2.20 may be difficult to see until we hit the new year. We have seen a climb for the AUD against the Euro over the past few months due to a fairly negative outlook for the Eurozone too but I feel this may remain range bound slightly above and below the 0.65 level.
Of course there are always surprises that pop up so never rule anything out but looking at the stats at present I feel the best thing to do if you have a pending currency exchange involving the Australian Dollar is to either place limit orders (this is where you can set an automatic buy at a particular rate of your choice) or just to trade on the spikes.
If you do have a requirement to buy or sell Australian Dollars and you want to achieve the most for your money then do feel free to contact me (Daniel Wright) directly to discuss the matter further. You can email me (Daniel Wright) on [email protected] with a brief description of what you would like to do and a contact number and I will be more than happy to give you a call.