At the end of last week anyone with a buying Australian Dollar requirment would have been feeling anxiety akin to the 10+ Cent drops following the Leave vote in June on GBP/AUD.
Mark Carney and his team at the Bank of England are attempting to backtrack all transactions that day to find the route cause, but the consensus is that automatic trading algorithms created a ‘flash crash’ in reaction to a large position in Sterling being sold, which means that Pound was being sold off in droves – with the resulting panic seeing its value drop through the floor.
This event was seen as an anomaly on financial markets. Whilst arguably this could not have happened without the heightened nervousness surrounding the UK and the Pound at the moment in the wake of the Leave vote back in June, this is not representative of a heavy trend against the interest of Australian Dollar buyers in the short term.
So what does this mean for buying Australian Dollar rates moving forward?
We already saw a net recovery on GBP/AUD by the end of the day back above 1.63. As such, on Monday, I expect similar gains for the Pound against the Australian Dollar, as a calmer market will see the opportunity to buy up the mountain of cheap Sterling created by Friday’s trading. With increased demand for the Pound its value would rise parralel to it.
However, markets are anything but stable at the moment,and as as Friday proved, barely even rational on occasions.
As such I would not expect a return above 1.66/67 anytime soon. Anyone with an Australian Dollar buying requirement should know that a premium will be put over the next few weeks and even months on being in a position ot move quickly should any tempting opportunities emerge to ensure you are never ‘last to the party’ when it comes to your purchase.
I offer a proactive service to keep my customers informed of such opportunties, and any changes in expectations on the currency markets to ensure you remain a well informed purchaser.
Australian Dollar sellers are in a more enjoyable position for sure at the moment for obvious reasons. If you wish to ensure this gifted movement on the exchange rates are seized you can contact me on [email protected] over the weekend whilst markets are closed for an immediate quote on your transfer. However, if you are taking a longer term view and can afford to wait beyond the next few weeks, then we can still discuss how best to approach this marketplace in order to safeguard your transfer with the aim towards maximising your currency return.
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 purchase later in the year. Pre-booking your currency could save you thousands on an upcoming purchase or sale of Australian Dollars.
Australian Dollar buyers and sellers alike can also get in contact with me using the form below, and I will respond as soon as I am able.
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