GBP/AUD under further pressure as commodities rebound (Joshua Privett)

Buying rates for the Australian Dollar, GBP/AUD, are perilously close to knocking on the door below 1.80 following another net week of slides on the currency markets.

Despite the Pound benefitting at the start of the week from the positive inflation data and increase in retail sales prompted from an early Easter, the net losses on GBP/AUD far exceeded any initial gains.

The Australian Dollar is enjoying heightened global demand which is bolstering its value for a number of reasons which outweigh any short-term positive news the UK can produce to bolster the Pound.

In terms of risk, the shoe is now firmly on the other foot. Last August the rally against the Australian Dollar began in earnest as worsening news out of China saw confidence in the Australian economy drop by association. Alongside a commodities market spiralling downwards, this allowed GBP/AUD to reach multi-year highs.

Now the opposite is true. Oil prices have shown signs of life and the future looks even brighter. The world’s major oil exporters are meeting in Qatar today to discuss freezing output to allow prices to naturally rise. China has shown a commitment to stability since January, and with the looming Referendum for the UK, it is now the Pound which is a gamble to invest in – causing Sterling holders to see their buying power fall.

Currency markets rarely enjoy changes to the status quo and businesses are already moving their capital out of the UK ahead of the Referendum. This is part of the reason which the Eurozone has attracted more capital investment from overseas in the first three months of this year compared to the entire year of 2015, which correlates to my experience as most of my current business customers have been moving their funds out of the UK rather than back into the Pound.

The silver lining for Australian Dollar buyers, which is not available for anyone with vested interests in the likes of the US Dollar and Euro, is the sheer volatility in GBP/AUD exchange rates.

With average movements of 2-3 Cents daily between the high and low, even a falling market can present a number of opportunties in a 24-hour period. Anyone considering moving funds for a property purchase or emigration to Australia can see a four to five figure difference in their return just based on these daily movements with a well-timed transfer.

As such I strongly recommend that anyone with an Australian Dollar buying requirement should contact me on [email protected] to discuss a strategy for your transfer in order to maximise your currency return.

To take advantage of these daily movements, a popular option among my current customers is a ‘limit order’. This is an automatic buy order placed into the markets at a pre-determined level set by you which allows you to secure your currency immediately, even if that price is available only for a few moments (a regular occurence for GBP/AUD exchange rates).

This is in the market 24/7, and the level can be amended at any time, or taken out of the market at no cost.

If this order fills you do not necessarily have to buy all of your currency up-front, this can actually be bought on a ‘forward’ basis, which means the exchange rate you acheive can be fixed for up to a year for just a 10% deposit if you do not need your Australain Dollars until later in 2016, or if your full amount of funds are not available right now.

If you email me before markets open on Monday with a brief description of your requirement, and the best number to reach you on to discuss your options, we can have a plan of action in place before the serious market activity begins in the afternoon.

Australian Dollar sellers can do the same, and I can explain how best to ride the expected movements in your favour to their completion within the time period you have to complete your transfer.