At the time of writing we are about 12 hours away from global financial markets opening once more after the weekend, and will buying Australian Dollar exchange rates continue to fall after the election results?
When the exit polls came out late on Thursday the Pound fell sharply against all major currencies. GBP/AUD fell as low as 1.67 in the hours that followed into Friday, with uncertainty at what a Hung Parliament may bring driving down demand for the Pound, and therefore cutting away at it’s value.
With the Conservatives able to form a minority government with their informal affiliation with the DUP, the Pound then recovered, with GBP/AUD up to 1.69 at the close of play before the weekend.
However, Australian Dollar buyers are not out of the woods yet.
Tomorrow the Conservative legislative agenda has to be voted in, and Labour are desperate to use this as a platform to call for another election and undermine Conservative authority. We will not know until then what concessions are being added to keep the DUP in side, and whether this will play well within the whole of the Conservative party members.
Markets will also react to the content as well. Will this change the Brexit agenda? To what extent will the Commons challenge Theresa May’s current mandate? Given that all agendas, policies and laws now have to be voted on, will tomorrow’s actions paint the picture of a cumbersome and ineffectual Government? We will know the market’s reaction by the afternoon.
I am well positioned to assist anyone with a buying or selling Australian Dollar currency requirement to time their transfer and stay informed in this fluid marketplace. You can contact me directly on [email protected] to discuss a strategy for your transfer and your options.
One final point is that I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for a future requirement you have planned using only a small deposit, eliminating any risk from further currency exchange movements.