The Australian dollar could see a renewed boost in its fortunes with the rising price of commodity prices to include oil and iron ore. Climbing commodity prices are normally a good signal that the global economy is functioning well which bodes well for currencies like the Aussie dollar. Australia of course has a large export market for raw materials and is the reason it is referred to as a commodity currency. As such when the price of iron moves higher as it has done in the last three months then this is welcome news for the Australian dollar. Any further increases in commodity currencies in these coming months should only help support the dollar further.
The Australian dollar had come into a little bit of trouble of late with some sizeable losses seen after the Reserve Bank of Australia made clear that it is not even considering any interest rate increases at this time. Rates for GBP AUD moved into much more attractive territory for those clients looking to buy Australian dollars although those gains are now being brought back down after the recent rally in commodity prices.
The pound appears to have found support above 1.70 for the moment and any changes to commodity prices are likely to see the dollar react.
For those clients buying or selling Australian dollars for sterling would be wise to pay close attention to the next round of Brexit discussion which will resume tomorrow in Brussels.
The perceived stalemate is likely to keep pressure on the price of sterling and movement round this impasse is not expected until December of even January. As such clients looking to buy Australian dollars in the short term are unlikely to see rate much higher than the levels currently available. Once again the Brexit negotiation will continue to be the single biggest driver for sterling exchange rates in these unpredictable markets.
Should you have a currency requirement and need to either buy or sell Australian dollars for pounds or Euros for example then please do get in touch with me and I will be happy to look at your requirement and see how we may be able to assist. We are able to achieve excellent commercial rates of exchange from the live markets but we can also help you with the timing of the conversion and look to help you find a good day to do the trade. You can email me directly at [email protected]