The brief spike for AUD buyers has slipped almost as quickly as it began with a raft of events causing some big slippage on the rate. Firstly yesterday was a fresh poll for the UK EU Referendum indicating that the Leave camp were being underestimated, the Guardian poll had a slim majority for Leave according to its combined Telephone and Internet polls. This caused the pound to suffer losses yesterday afternoon before overnight Chinese Manufacturing data showed an improvement in sentiment helping the Australian dollar to rise. There was also some good news in Australia as the Australian economy was shown to be growing faster than expected prompting further gains for the Aussie.
The expectation for AUD sellers for pounds should be further improvements as the pound is likely to suffer from uncertainty as we get closer to the Referendum vote. The outcome is looking less and less predictable making decisions as to when to buy currency very difficult too. The range of predictions sits from as low as 1.80 to as high as 2.20 in the next month. Australia has a General Election scheduled for the 2nd July and this is all likely to insert further volatility on the exchange rate. If you are planning a transfer in the coming weeks and beyond making some plans now is vital to maximising your exchange rate. Sitting on your hands hoping the exchange rate will magically move in your favour is not really a strategy that favours those who do get the best rates. Whilst there are never any guarantees as to what will happen forward planning and understanding of events driving the markets will go a long way to helping you achieve the better deals.
For some practical assistance with the timing and planning of your exchanges please feel free to email me Jonathan Watson on [email protected]. In my role as a specialist currency broker I have written extensively on the currency markets and been quoted in numerous newspapers and also appeared on BBC News discussing the Referendum.