Buying Australian Dollar rates are still seeing gradual declines down into the lower 1.90’s, with GBP/AUD still probing to be the most volatile of Sterling’s major currency pairings.
Little news, economic or otherwise, can outshine the current spotlight on the upcoming Referendum vote. Incredibly positive manufacturing news for the UK economy wasn’t even enough to cause a stir on buying rates longer than 6 hours yesterday, with European markets having woken up to 1.93 on GBP/AUD once more – a 9 cent loss in the space of a few weeks.
Close polling in the Australian election isn’t even having the traditional dampening effect on AUD value since the upcoming vote in the UK has far greater ramifications.
The likelihood is that this pressure on Sterling will be continuing until the vote itself, after which, it is completely up in the air on where the public vote will sway.
In three potential scenarios leading up to the vote – two of them will lead to Sterling weakness. These two are if polls stay close, or if the leave camp edge ahead in the polls. Both of which will see capital leave the UK with financial institutions, companies, and individual investors unwilling to gamble on the value of their capital dropping sharply in the event of an ‘out’ vote.
The alternative, is a boost for the Remain camp which will see the Pound gain value as it had since mid-April until fairly recently with polls edging much closer and the Leave camp edging ahead in some. It is difficult to say whether this will happen or not, the number of undecideds in this election is unprecedented this close to the vote itself.
However, with 2 out of the 3 potential outcomes on the polls pointing to Pound weakness, it’s fair to say that this is still more risk than opportunity in the markets for Australian Dollar buyers.
Anyone with an Australian Dollar buying requirement over the next few weeks, or even months, does not have to wait for drama preceding the vote and its outcome before addressing their currency exchange. A popular option, made more popular in recent weeks, is known as a forward contract. This essentially allows you to pre-book your currency at an agreed rate of exchange that day for a small deposit ahead of a future purchase up to 18 months down the line.
I strongly recommend that anyone interested in avoiding risk on their transfer should contact me on 01494 787 478 and ask the reception team for Joshua to discuss how to implement the above option, or to simply conduct your full transfer ahead of time to avoid the expected downside over the next few weeks.
I have never had an issue beating the rates of exchange offered elsewhere, so a brief conversation concerning your transfer could save you thousands.
AUD sellers can also get in contact, and I will explain how best to ride the expected movements in your favour to their completion in the run-up to the Referendum. [email protected]