With the US interest rate decision ending up as largely a non-event for the currency markets, the value of both Sterling and the Australian Dollar are being re-evaluated before the end of 2015.
The Australian Dollar was expected to take some hits from the US interest rate rise. AUD value is kept relatively strong due to its high interest rates relative to the UK and the US, so investors were expecting that an interest rate hike in the US could lower the value of the Australian Dollar.
However, this did not really materialise – or more accurately, it had already done so months beforehand.
Explicit hints about this hike has been made since October, so the Australian Dollar had already lost value since on the decision, which explains why GBP/AUD still find themselves comfortably above 2.0 despite a strong performance in the last two months by the Australian economy.
With the hype around the US interest announcement already begin to wane, we can see Australian Dollar buying rates begin to deflate. GBP/AUD has already moved down 3 cents from its high last week.
This could be set to accelerate further, with UK GDP data the only economic news of note next week as countries wind down for the holiday break.
Last month UK GDP came in poorly due to struggles in the construction and manufacturing centres, with GBP/AUD falling as a result. With less daylight hours and tumbling temperatures, this will likely continue into this month.
With no releases whatsoever between Christmas and the New Year, I would recommend that anyone with Australian Dollars to buy should wrap up their requirements ahead of time to avoid missing out on the current buying opportunities available.
From what you have read above my opinion would recommend further that this is done on Monday to avoid the downside risk which markets are expecting as the week progresses.
You have the option to contact me on 01494 787 478 and ask the reception team for Joshua to receive a free, competitive quote on your exchange. I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can even be fixed for up to a year if you are worried that your future Australian Dollar purchase will be more expensive than the current levels which are available.
AUD sellers can also do the same, and we can discuss a strategy in order for you to maximise your Pound return within the time period you have to complete your exchange. [email protected]