Friday saw some of the largest single-day falls on record for buying Australian Dollar rates, with GBP/AUD having fallen from close to 2.0 Thursday evening, to below 1.8 by 4am Friday morning in the UK when initial results were being released.
Throughout the day the Pound was moving around with unprecedented volatility. But there were periods of stablisation, which allowed the Pound to regain four cents against the Australian Dollar by close of play on Friday.
Unfortunately for Dollar buyers, rates took the double hit of severe Pound weakness but also a strong surge in Australian Dollar strength. Currencies like AUD fare well in times of uncertainty, as the higher interest on the currency is attractive to investors when more stable gains in safe-haven currencies such as the Pound are lost.
The story still has a lot to unfold, but for the moment, the main news seems to have been released already. Cameron will resign come October, and the public have voted to Leave the European Union, beginning what seems to be a two-year process.
Scottish MP’s are talking loudly about their own Referendum again, and even Northern Ireland have begun murmering similar sentiments. Finally, businesses are already stating that any loss of access to the single market will be met with job losses to Frankfurt, Dublin, or Paris. But all of these are further down the line than currency buyers can plan for at the moment.
Moving forward most movement will be governed by speculative trading off the back of the Brexit result.
The average difference between the high and the low each day for Australian Dollar this year has been around 2-3 cents. This will likely be increased next week.
Therefore opportunities for buying and selling Australian Dollars from this point will present themselves on a daily basis. A premium will simply be put on being able to move quickly, as Friday proved these improvements for either side will be eaten into quickly as speculators seek profit in a volatile marketplace.
I strongly recommend that anyone with an Australian Dollar buying requirement should contact me whilst markets are closed over the weekend on [email protected]. I offer a tailored service to anyone wishing to exchange currency in this current arena filled with atypical levels of volatility and alert my customers immediately to any opportunities which emerge.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can actually be fixed in place for anyone planning a currency purchase in the future, allowing you to avoid the uncertainty over the next few weeks and their effect on the value of your capital.