The 24th October 1929 was the start of the Wall St Crash that led to the Great Depression. I don’t want to focus on the depression part because well I think stagnation is more likely than anything at present. What I would like to focus on is the big drop on the stock markets, that day saw a 13% fall on the Dow – a US stock market measuring various businesses. The Australian dollar since June has appreciated by 21.43% taking from 2.04 to the current 1.68 level. The last time the Australian dollar was this strong against the pound it was October 24th 2013, quite a move we have had!
This leaves the big question will this carry on? Well I personally would not rule out further improvements but the currency markets are very difficult beasts to predict and any forecast carries no guarantees. It then becomes a question of risk – are you prepared to risk the gains that you have had for the possibility of it improving further? It is unlikely the rate will get better by another 20% but we could potentially see rates in the lower 1.60’s .
If you have a transfer to consider buying or selling Australian dollars there is a strong likelihood that the rates will remain volatile and for Aussie buyers become more expensive. For Aussie sellers the rates may improve a little more but were there to be anything unexpected from the RBA or the Chinese economy the Aussie would suffer. If you have a transfer to consider why not subscribe to our posts above or fill in the form. Alternatively you can contact me Jonathan directly on [email protected]. I have been working in this job for over ten years and can help plan and manage your exposure to the ever volatile currency markets.
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