Sterling made some positive inroads against the AUD during Wednesday’s trading, bringing some respite for those clients holding the Pound.
GBP/AUD rates hit a high of 1.6369, gaining two cents at the high. Whilst the AUD is likely to find support under 1.65, it is at least reassuring that Sterling has been able to gain a foothold, especially when you consider how much negative press there has been around the UK economy of late.
Whilst the UK’s on-going Brexit talks continue to dominate headlines, with multiple reports of a disjointed so far unsuccessful approach handicapping any major advances for the Pound, the AUD has run into its own problems this week.
Despite the Australian economy performing admirably of late, there is a growing concern concerns that the potentially unsustainable property price housing bubble that is engulfing Sydney & Melbourne, could soon come to a head.
If interest rates are hiked, as floated by the Reserve Bank of Australia (RBA) in their recent minutes, this could have a detrimental effect on a large number of home owners in two of Australia’s most affluent cities. Whilst the RBA will be aware of the destabilization this could cause, some analysts are arguing that it may be unavoidable if inflation levels suddenly rise at a rapid rate.
Even more poignantly the current saga surrounding the US & North Korea could well be a catalyst for global investor risk appetite to shrink. This in turn could be bad news for the Australian economy and ultimately the AUD, which being a commodity based currency, is heavily reliant on global growth.
Therefore, any slowdown in this sector, in particular in the US economy, could lead to investors will then pull funds away from the riskier currencies such as the AUD and back into safer havens like the CHF or even USD.
This means that commodity currencies are open to larger swings than others and as such I would be looking to take advantage of the very attractive selling levels currently on offer and remove any market risk.
If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.