The Australian dollar has been gently weakening since August when the market learnt that the RBA (Reserve Bank Australia) might not be looking to raise interest rates as quickly as many had assumed. With some concerns in the Australian economy, many had questioned whether or not the RBA would be able to do this and the currency weakened.
2018 could easily see similar concerns raised and the currency struggling, I would be most concerned about the property market in Sydney where house prices have risen dramatically and caused many to be priced out of the market. House prices have risen for a long time but the latest data for Sydney showed a small decline which has seen the Australian dollar weaker.
If house prices are falling under their own accord then there is less need to raise interest rates in the future, most clients looking to buy or sell Australian dollars will be subject to this development. The Brexit will of course also be a big factor in this situation, if you have a currency transaction to undertake I would suggest making plans in advance to reduce the uncertainty connected to this situation.
2018 has plenty of events which could trigger unexpected volatility on the currency markets, there are a series of data releases coming soon which could greatly influence the rates. Often currency movements will be short and sharp, you might not even realise you have missed out on an opportunity.
We are here to help with the planning and timing of any currency exchange you will need. As well as offer a proactive service to help you make the most of movements on the currency markets we can undercut the kinds of rates offered by other sources. I have had plenty of clients contact me who are currently using Transferwise or OFX and been able to show them a saving.
For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected].