So far the Australian Dollar has not had the greatest start to the weeks trading, seeing losses against the Pound and Sterling has pushed above and through the 1.65 (0.6060) mark today.
It does appear that the trend for AUD/GBP has now turned around a little, however the next 24 hours will be key for where it heads next with article 50 (the start of the brexit process) officially being triggered in the U.K tomorrow.
This will be a key factor for anyone looking to carry out a currency exchange involving either the Pound or Australian Dollar, as it will effectively start divorce proceedings between the U.K and the EU.
Global risk appetite appears to have fallen away a little too, as Antipodean and commodity based currencies such as the Australian Dollar have been on the decline for almost a week now.
My view for a while now is that I see currencies such as the Australian Dollar and New Zealand Dollar having a poor run in the coming weeks, as there is so much uncertainty around the world which may lead to a reversal of what is known as carry trading.
Carry trading is where an investor borrows money in a currency with a very low interest rate and moves it into a currency with a higher interest rate, making a return on the difference. With higher interest rates the Australian Dollar is regularly used for carry trading and in times of global uncertainty you can see it weaken quite considerable as the carry trades are sold back and demand for the Australian Dollar declines.
If you have the need to exchange Australian Dollars in the near future and you are looking to secure not only the best rate of exchange but to time it well too then it is well worth getting in contact with me directly. You can email me (Daniel Wright) on [email protected] with a brief overview of what you need to do and I will be more than happy to get in contact with you personally to explain the various options available to you.