The Aussie has broken 1 year highs against the pound which is a remarkable turnaround from some predictions from earlier in the year where we expected an interest rate cut which would have seen the Aussie weaken dramatically. As the Chinese economy becomes more and more uncertain the Aussie should weaken but currently increased demand from China for Australian raw materials has seen the Aussie strengthen particularly against a much weaker pound.
The outlook for anyone buying Aussie dollars is not too hot since there is a strong likelihood the pound will weaken further because of the upcoming Referendum. Trying to pinpoint exact times on the exchange rate we will expect big losses is tricky but as we have already seen this year unexpected negative headlines and announcements could trigger big losses for sterling. With Iron Ore prices and other commodities which Australia exports improving in price the exchange rate has got better for AUD sellers, if this is a transaction you need to consider the 1 year highs could be strong reasons to consider locking in.
If you wish to get an overviews on your position buying or selling Australian dollars please email [email protected]