Despite being a bullish week for the Pound overall, its performance against the resilient Aussie Dollar has been hasn’t been so great after surging commodity prices, particularly within iron ore, have boosted the Aussie Dollars value.
Many have been expecting AUD to come under pressure after the election of Trump in the US presidential election earlier this month.
Throughout the year the Aussie has strengthened as the currency has been in high demand due to the high yields within the Australian banking system. But now that a US Fed interest rate hike is looking pretty certain (current bets suggest a 90% chance of a hike in December), many are expecting the Aussie to weaken as investors take their funds out of AUD denominated investments and deposits, and into the US Dollar amongst other currencies considered more secure as interest rates begin to increase globally.
The surging commodity rates have put this expected Aussie weakness on hold at least for now, which has presented those converted AUD into GBP with continued favourable levels at least for now.
Should the bullish run for commodity prices end, I’m expecting a drop in AUD’s value so for those holding Pounds and waiting for the best time to convert them into Aussie Dollars, it may be an idea not to rush into that decision but rather start planning when best to make it, which is where a company like our can be useful.
Not only do we offer award winning exchange rates which will save you money when making the transaction when compared with the typical high street bank, but we assist clients with the timings and offer them a number of different options and approaches which can end up being financially beneficial.
You can email me (Joe) directly on [email protected] with an outline of your requirement if you would like to discuss it and make use our my experience, and you also get in contact for quote if you would like to compare our rate with your banks/current providers. Just provide me with an outline of your plans and I’ll be back in touch as soon as possible.