Buying the Australian Dollar has continued to become more expensive this week. The negative trend which we have been seeing since the beginning of the year has been continuing and there seems little argument to suggest that this trend will be changing any time soon.
The biggest positive movement we have seen for GBPAUD trades was a week ago when we saw rates recover 2 cents. This was seen by many as a short term opportunity rather than a change in trend and anyone that missed that I am afraid the chance has passed.
Moving forward we know that rates do not move in a straight line so these opportunities may return. We here offer SPIKE notifications and rate alerts to help our clients time transfers in this moving market – if this is of interest please register via email through [email protected]
I strongly recommend that anyone with a Euro, US Dollar, or Australian Dollar buying requirement should contact me on 01494 787 478 and ask the reception team for Steve Eakins to discuss a strategy for you transfer in order to maximise your currency return.
Rates currently sit close to 1.87 and many expect rates to fall to 1.85 before we see 1.90 again. The arguments to suggest this movement is:
- Positive data for China seems to have a small uplift to AUD whereas Negative data has a much bigger negative impact on the AUD making it more expensive to buy.
- The Australian economy has been showing signs to improve.
- The Reserve bank of Australian has commented that they will not be cutting interest rates further – adding more strength to the AUD
- Concerns about the BREXIT are weakening the Pound. Both domestic and international investment will start to slow down as the uncertainty intensifies on the future of the UK economy – this will be reflected in sterling’s value.
In the near future we expect a further fall in value as the Pound releases UK Retail figures this morning. This is expected to show another drop and therefore be reflected in the UK Pound. If you want to move before this result please contact me Steve Eakins via [email protected] if you would like to contact me you can call me on (0044) (0) 1494 787478