GBP/AUD rates have remained flat during Thursday’s trading, with the Pound curbing any further losses following its recent downturn.
Much has been made of the Pound’s detraction, which has come in line with a grave market concern surrounding the political limbo and subsequent economic concerns surrounding the UK economy at present.
UK Prime Minister Theresa May’s decision to call an early election backfired spectacularly and with UK Brexit negotiations already under severe strain and constant scrutiny, investors have turned their back on Sterling.
The AUD continues to surprise and with an upward spike of over 8 cents in the past few weeks. This has helped propel the AUD to near two month highs against GBP and as such many clients will be looking to take advantage of the current rates, with GBP/AUD trading around 1.68.
The AUD is likely to find protection under 1.70 but with the current market unpredictability, any exposed positions could be hit hard by a change in market sentiment.
Being a commodity based currency the AUD relies heavily on global growth remaining strong and whilst the current climate is pushing investors towards the AUD and its higher yielding interest rates, any slowdown in its export sector will hit the Australian economy hard and the AUD will almost certainly suffer as a result.
A strong AUD relies heavily on the export of Australia’s vast supply of raw materials to China, so any clients looking to buy or sell AUD should have a strong interest in Australia’s monthly trade balance figures.
With the UK economy flagging and the tough Brexit negotiations likely to dominate headlines for months to come, it is proving extremely difficult to predict any long-term forecast.
As such I have been advocating that my clients look for short-term market spikes and any spike back towards 1.70 should be taken advantage of by AUD buyers, whilst sellers will be hoping for the recent trend to continue, with a move towards 1.65.
Now is the time to contact a personal currency broker and here I can help guide you through this turbulent market. I assist my clients with the timing of their currency transfers, to ensure that any market value is maximised.
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Please feel free to contact me if you would like to be kept up to date with all the latest market movements, or simply wish to compare our rates to those of your current provider.
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