So folks it is that predictable time of the year when everyone is busy making predictions on the future and the year ahead. With regard to the Aussie one firm point will be that the rate will continue to be driven by events in China, Australia’s largest trading partner. Rather than try to predict what will be happening in the future with the Aussie why don’t we take a closer look at China as it seems that will help us more. So let me start by predicting that this year the Aussie is going to have a very turbulent year, principally because of the uncertainty of what will happen next in China. I think it highly like China will embark on further easing whether by cutting their interest rate or by devaluing the Yuan. The main effect on the Aussie from the Chinese market intervention was to strengthen the Australian dollar as it made it more likely the Australian economy would be faring better in the future.
I think the current spike on the Australian dollar should therefore be capitalised on since longer term the Aussie will strengthen. I think the pound is going to weaken and that investors eager for a boost on their returns will be stocking the Australian dollar to take advantage of the higher interest rates and returns available. I expect the Aussie will therefore claw back further ground against botrh thr
If you are planning an Australian dollar transfer please speak to me Jonathan by emailing [email protected] with an explanation of what you are looking to do. As a currency specialist with many years experience helping clients moving large volumes of money globally I am well placed to offer information on all of your options.