Australian Dollar buying rates have fallen back into the lower 1.90’s with news on Friday being released of a major poll from The Independant showing a suddenly commanding lead for the Leave camp at a critical point before the vote next week.
This poll suggested 55% support for a Brexit, and 45% in favour of the remain vote, this also includes a weighting based on expected voter turnout.
Whilst these numbers are not definitive, we are seeing a shift in momentum towards the leave camp, with an average of all major polls over the last week showing a dead heat at 50:50 for both sides. The week before, Remain had it at 52:48.
Currency markets rarely enjoy a change to the status quo, we only need to look back to the Scottish Referendum to see an example of this.
Anytime the Remain camp shows gains the Pound flourishes, whilst any examples of increased public support for a Brexit sees Australian Dollar buying rates becoming a dearer prospect. Since this shift for the Leave camp at the beginning of last week, GBP/AUD rates have already lost 10 cents, and the vote is still 9 trading days away.
With GBP/AUD rates of exchange deteriorating in this gradual fashion this represents a steady stream of capital out of the Pound and into safe-haven currencies – which can be seen in the rise in value for the Dollar and Swiss-Franc. Unless the Remain camp gains a commanding lead, further depreciation for the Pound can be expected, and dearer buying rates for the Australian Dollar, as well as other major currencies, can be expected.
I strongly recommend that anyone with an Australian Dollar buying requirement over the next few weeks or months should explore your option in how to manage your risk over what could be an unprecendented event in the market place, particularly if the UK does decide to leave the EU.
Email me on [email protected] to discuss these options, and to hear a live quote on your transfer if you decided to alleviate your risk entirely. You can either pre-book your currency at an agreed rate of exchange for a future purchase, or can simply buy your Australian Dollars immediately and have them sent to your destination account.
I have never had an issue beating the rates of exchange offered elsewhere, and Australian Dollar sellers should also get in contact ahead of the vote to have a plan-of-action in place to seize any peaks which are expected ahead of the vote.