Australian Dollar buyers could be expecting some respite this week as some improvements in the UK’s situation and hints of interest rate cuts in Australia tip the balance back in the scale of those with a GBP/AUD requirement.
Overnight the minutes from the latest RBA meeting will come out as European markets sleep and are expected to finally reveal some hints to the markets about how the Reserve Bank of Australia intends to safeguard the economy from further regional problems, most specifically China.
Glenn Stevens, the Governor of the RBA, is has been making hints to markets since the turn of the year that emergency financial input may be necessary, with markets guessing that he may finally take a chunk out of the incredibly high interest rates on offer in Australia. Should he do this at their meeting later in March, the Australian Dollar will be put under significant pressure.
Even hints of this in the meeting’s minutes could present some tempting opportunities for AUD buyers.
Furthermore, fears of a Brexit which have forced a cloud of anxiety surrounding Sterling since December may be tackled later this week during the EU leaders’ summit. The reform proposals are expected to be passed after a bit of a fight, but any positive movements to keep the UK in the European Union will do wonder’s for the Pound’s image on the currency markets.
To put this in perspective, many analysts were forecasting a 20% fall in the Pound’s value should a Brexit come about, non unlikely given the near 8% drop when polls were close during the Scottish Referendum.
With the current volatility and with much of the news still coming out overnight, a popular option at the moment is a limit order for anyone hoping to purchase Australian Dollars. This is an automatic order placed into the markets which is in effect 24/7. Should a the rate of exchange you desire be reached overnight (which was the case this morning at 2am where GBP/AUD rates were 2 cents higher than how the day ended), then your currency can be booked out automatically before any corrections occur.
I strongly recommend that anyone with Australian Dollars to buy in the short to medium term should contact me on [email protected] to discuss a strategy for your transfer in order to maximise your Australian Dollar return.
I have never had an issue beating the rates of exchange offered elsewhere, and I can answer any questions you may have about the buying process, the benefits of using a currency broker, and explore current forecasts for GBP/AUD rates more fully.