Post-Brexit Sterling has lost considerable value against the Aussie. Theresa May is due to be sworn in as the United Kingdom’s new PM later today. This has caused a much needed Sterling rally against the Australian Dollar with GBP/AUD breaking through 1.75 earlier in the today’s trading. Down under, Malcolm Turnbull has been elected for his second term as Prime Minister by a very narrow margin. Historically, the appointment of a Prime Minister would have a positive effect on the country’s currency, on this occasion however this was overshadowed by the UK British PM’s appointment.
The Reserve Bank of Australia (RBA) have mentioned the possibility of a rate cut. It does look as tough the RBA has stalled recently, which could be due to a firm government not being in place. With the appointment of Turnbull this no longer the case. Australia rely heavily on raw material export to the Chinese, with the high price of the Aussie their exports are becoming less appealing. A cut will devalue the Aussie and keep the Chinese happy. I think there is a chance of a cut in coming months and if this does take place expect AUD weakness.
If you are an Australian Dollar seller you are currently in an excellent position. We have not seen these levels since November 2013. The UK interest rate decision is due tommorow and if there is a drop in rates it will create an incredible selling opportunity.
If you have a currency requirement it is vital to be in touch with an experienced broker. The timing of your trade is key during such a volatile times, If you have a seasoned broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to assist with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at [email protected]. Thank you for reading my blog and I look forward to hearing from you.