Will GBP/AUD fall below 1.60? (Daniel Johnson)

Australian Dollar Forecast – Unemployment Weighs on Sentiment

Will the Australian Dollar continue to strengthen?

Australia has had a wave of positive data for a considerable period. In fact, the Australian economy is only a month away from entering it’s 104th consecutive quarter of economic growth without a recession, breaking the Netherlands previous record. Despite many major economies struggling of late, consistent high commodity prices have benefited Australia.

When you have strong data combined with the uncertainty surrounding Brexit there is the possibility GBP/AUD could drop below 1.60 short term. The pair is currently threatening to as it sits at 1.6080.

Personally, I feel Sterling is chronically undervalued and once article 50 is triggered and trade deals become more apparent the pound will begin to rally, although this will take time. Keep in mind Australia may be forced to weaken the Australian Dollar through monetary policy as if their biggest trade partner, China, feels goods are becoming too expensive they may seek cheaper alternatives elsewhere.

Budget

Keep a close eye on the budget today, The pound will respond to how bullish Hammond’s spending will be. He may of course try and push the major issues on to the Autumn budget after stating  this will be last Spring meeting.

If you have a currency requirement it is crucial to be in touch with an experienced broker during such a volatile period. It will prove extremely difficult to time your trade, so make sure you have a broker on board to pick the correct strategy to suit your needs. Picking the correct contract could make a huge difference to your return. I specialise in property transfers, I will make sure the entire process goes through quickly and efficiently. I am also in a position where I can confidently say I can beat any competitors rate of exchange. I work for Foreign Currency Direct PLC, we have been trading for over sixteen years and are registered with the FCA.

If you would like my help, let me know the currency you are trading, the size of your trade and your time scale and I will endeavour to produce a strategy to suit your needs. I can be contacted at dcj@currencies.co.uk