Many clients have been asking me recently where the Australian Dollar may head next, with no interest rate move on the cards in the near term and numerous global problems at present I feel that the Australian Dollar may get a little weaker in the coming months.
A recent article in the Sydney morning herald suggests that many feel the same. Much of the article is based around the U.S Dollar and Australian Dollar flows. The Federal Reserve in the States have hinted at a further three interest rate hikes in 2018 and many analysts still believe we will see very little movement on interest rates throughout 2018.
An interest rate hike is seen as positive for a currency and a cut is seen as negative, as a hike will make that currency more attractive to investors. On top of this, you tend to find that you can see a flow between USD/AUD when there are times of global issues. The Australian Dollar is perceived as a ‘riskier’ currency and the U.S Dollar still held in regard as safer haven currency.
As many regular readers will know, there are a huge amount of problems around the world at present, both in terms of economies around the world and politically too, I don’t see many of these going away anytime soon, so we may see the Australian Dollar take a few knocks as and when there are further issues that crop up.
My personal opinion is that although the Australian economic data has been ok, the economy still isn’t flying and there is still an issue with house price inflation in many areas and that is a problem that is hard to resolve as the RBA are still not in the position to raise interest rates at present.
Overnight last night we saw extremely poor Retail Sales data for Australia, leading to Australian Dollar weakness overnight.
If you are in the position that you need to exchange Australian Dollars in the near future then I can not only help you with getting the best rate on your exchange but also with the timing of your transfer.
Should you require assistance then I am always happy to provide you a quote against your current choice for exchanging money, along with having a discussion with you to tailor a game plan for how to approach the upcoming exchange.
If you would like me to get in touch with you then feel free to email me directly on [email protected] and I will be more than happy to get in touch with you personally.