Market expectations are now squarely focused on the UK Referendum and it looks like this is only going to cause further upset for anyone buying Australian dollars with pounds. The Australian dollar is itself very strong following a good week of data which included falling Unemployment and rising Industrial Activity in China. As Chinese data surprises and improves it is very much supporting an improvement on the currency markets for the Australian currency as the Australian economy relies so heavily on Chinese demand for Australian raw materials. We would expect that in the coming weeks the pound is going to come under much pressure as investors draw breath at the looming prospect of a UK exit from the European Union. If you are selling Australian dollars and are looking for a better rate to buy pounds we may well see some improvements very soon!
Next week on Tuesday is the RBA (Reserve Bank of Australia) Meeting Minutes which will give us some further insight into the inner workings and thoughts of the Australian central bank. Time waits for no man but later in the week the UK Unemployment data on Wednesday morning might help the AUD sellers if the data is poor. Thursday is the European Central Bank Interest rate and policy statement, this could impact risk sentiment which may in turn knock the Aussie. Loose expectations would be for a strong Euro and confidence in the global economy to increase investors appetite for the Australian currency helping it strengthen.
All roads are pointing towards a further improvement in the value of the Australian dollar, if you have a transfer to consider making some plans in advance is the best way to mitigate your risk. For an overview of your position and to discuss the market and your options please email me Jonathan on [email protected] with a brief outline of your position and a contact number to discuss further.