The key news for anyone buying or selling Australian dollars is twofold. One is China and the other is the Reserve Bank of Australia. The likelihood is that the Chinese economic situation will cause the exchange rate to move as investors anticipate further reaction to the slowdown China is experiencing. Quite worrying is the lack of clarity over the data that has been released, official Chinese economic data points to 6.9% growth but can this really be trusted? I think on balance the slowdown is likely to be more pronounced than most people realise and consequently the AUD rate is likely to suffer in the future once this becomes apparent. I expect at some point in the future another negative reaction from the RBA as they try to anticipate further economic woes in the region. The net effect on the Aussie will be weakness!
The Aussie is still however one of the best performing leading global currencies and this has meant it is retaining value as investors look for somewhere profitable to park their funds in this low interest rate world we all occupy. I think the GBPAUD range for February is likely to be 2.02-2.10… If you have a transfer to discuss please email me on [email protected]