GBP/AUD rates of exchange suffered heavily on Friday afternoon, with the day’s anticipated speculation habits hurting not just Australian Dollar buyers, but anyone hoping to buy property or move capital abroad holding Sterling.
Each Friday, as my articles on this website have extensively covered since the Leave vote, profit-taking serious undermines the value of the Pound.
High street traders must choose a stable currency to allocate their profits from the week into whilst they are away from their desks. With the uncertainty and question marks over the direction of the UK economy, the Pound is understandly near the bottom of this list. The mass sell-off which ensues on Friday’s like clockwork sees the foundations of the Pound steadily chipped away.
However, the slide for Australian Dollar buyers was more exaggerated than others for one key reason – the change in leadership of the Reserve Bank of Australia.
Philip Lowe has taken over from Glenn Stevens who had been at the helm of the Australian economy since 2012. With Lowe being his second in command for most of this time, it was expected that his trigger happy attitude to monetary stimulus and easing would be continued – particularly with Australia still suffering with low inflation and an abnormally strong AUD.
However, he has surprisingly changed his tune. His initial speeches have immediately dismissed the potential for another interest rate cut in the short term and instead pointed out strong forecasts for the Australian economy to improve its inflation levels without intervention.
Whilst longer term expectations are that he is still expected to act, Australian Dollar buyers in the short-term have already felt and may continue to feel the sting of the new face of Australian financial policy, who seems bent on making a mark early.
He will be speaking first thing tomorrow morning in Australia, but he will find it hard to shock markets further. Instead I am expecting a short-term improvement on buying Australian Dollar rates given that Mondays see some reversal on Friday’s trading patterns with the sold-off Pounds readily soaked up.
Given the heavily exaggerated sensitivity of the markets in the post-Brexit vote landscape, a premium is set on being able to move quickly should any tempting opportunities emerge.
There are a number of options open to Australian Dollar buyers to make sure you are not ‘last to the party’ in these situations. I recommend that if you have a short to medium term requirement on GBP/AUD you should contact me on [email protected] whilst markets are closed over the weekend to discuss a how best to maximise your currency return.
As a point of not I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency requirement later in the year.
Australian Dollar sellers can also get in contact if you are planning a move back to the UK later in the year.
You can also fill out the form below, and I will be in contact as soon as I am able.
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