In recent weeks the Australian dollar has been taking a hit and many economists believe this trend will continue throughout 2017.
At present investment remains in Australia as interest rates remain high. However with forecasters suggesting that inflation will remain low this could force the Reserve Bank of Australia to cut interest rates early next year, which would lead to an Australia dollar sell off.
Couple this with the US Federal Reserve deciding to hike interest rates to 0.75% from 0.5% Wednesday evening, throughout next year I wouldn’t be surprised to see investors move out of the Australian dollar and into the US dollar.
Another factor this could lead to further Australian dollar weakness next year is the slowdown in China. Forecasters believe growth will slow to 6.4% down from 6.7% in 2016.
If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is [email protected] and I look forward to receiving your email.