Many with a buying Australian Dollar requirement would have had their hearts in the mouth by midday today, with GBP/AUD on the verge of breaking through 1.58 once more. Frankly over the past few days we have seen jaw-dropping falls which almost immediately recover from bizarre news releases that need to be explained.
Firstly, yesterday most news was focussed towards Canada. A country rarely covered on this website, but as a currency whose value is also heavily linked to the commodity markets such as the Aussie, there are parallels which can be drawn.
The Bank of Canada had their Monetary Policy statement which showed that the people at the helm of the Canadian economy believed they were heading to a slowdown in growth in the near future.
Earlier that morning the value of most commodity currencies had risen due to a strong boost to oil prices. All of a sudden markets were faced with a conundrum that despit oil prices rising the Canadian central bank were expecting slower growth. From the chatter we’ve heard it seemed like markets believed they expected this rally for commodity prices to be shortlived – causing just as an immediate loss in value and cheapening of the Australian Dollar as the gains recorded that morning.
Similarly, today the Pound was subject to a lot of movement due to the European Central Bank Monetary Policy statement.
Initial hints made by Mario Draghi, the head of the European Central Bank, suggested high expectations for Eurozone growth and drew a lot of investor activity away from the Pound and into its closest neighbour. The secondary effect was that the Pound lost value against its other pairings, such as the Australian Dollar.
The reverse then occured when Draghi made heavy hints that their next meeting in December that an extension to their current emergency stimulus package will be announced, causing the Pounds lost value to return, and then some.
This is just another reminder that markets are currently hypersensitive and opportunities emerge quickly to then dissapear. In this current market a premium is put on being able to move quickly should any opportunities emerge.
I offer a very proactive service to my customers to ensure you are not ‘last to the party’ should any opportunties emerge. I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency transfer later in the year, whether buying or selling Australian Dollars, and wish to eliminate risk entirely.
You can contact me overnight whilst markets are quiet on [email protected] or reach me on the form below and I will reply as soon as I am able.
[contact-form to=’[email protected]’ subject=’ADF’][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Contact number’ type=’text’/][contact-field label=’Buying or Selling Dollars?’ type=’select’ required=’1′ options=’Buying,Selling’/][/contact-form]