Iron ore has continued to go up for the fourth month in a row which is the longest period of increase since 2012 as demand from China continues to support the commodity market and therefore the Australian Dollar vs Sterling.
The price for the commodity is now the highest in two years but demand is cyclical and to me it is only a matter of time before Chinese demand starts to wane but the question is how long will we have to wait?
With Trump now in his second week as President of the United States he has upset many global leaders with some of his executive orders and with growth slowing in the US I think this will affect what is happening in China and therefore the Australian Dollar in the longer term.
In the meantime however whilst commodity prices remain resilient this could keep the Australian Dollar relatively strong vs Sterling for the time being.
The Pound is in my opinion still heavily undervalued against the Australian Dollar but whilst the uncertainty surrounding the topic of Brexit and Article 50 carries on then it will be difficult to see the Pound make any real significant gains even though UK economic data is going well at the moment.
Next on the agenda globally will be the US Federal interest rate decision due on Wednesday evening and typically whatever happens in the US has a knock on effect on the value of the Australian Dollar.
If you would like to take advantage of these current levels to exchange Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly for further information and a free quote and I look forward to hearing from you.
Having worked in the foreign exchange markets since 2003 I am confident that I can also help you with the timing of your transfer and make the whole process simple and stress free.
Tom Holian [email protected]