The Australian construction sector took a knock this week with a large drop in construction work done. The data which covers the last quarter of 2017 were particularly weak and highlights that there are some issues in the Australian economy. It is normally the construction and housing sectors which are the first to have problems ahead of an economic slowdown or recession. Australia actually has an incredible history in avoiding a technical recession lasting decades but a slowdown could be brewing down under which could weigh heavy on the Australian dollar.
Selling Australian dollars?
Those clients looking to sell Australian dollars for pounds are likely to see considerable market volatility over the next few days and over the course of this weekend. Brexit uncertainty continues to keep the pressure on the price of sterling but any developments at this particular time could see a sizeable market reaction.
UK Prime Minister Theresa May is meeting at her Chequers country retreat with her entire cabinet to try and form a final position on Brexit. Any details offered from the meeting are likely to see the pound react and it is understood that Theresa May will set out her Brexit plans in an about two weeks’ time before the formal trade talks take place in March. Anything positive in terms of clarity offered in my view should help strengthen the price of sterling against all of the major currencies including GBP AUD.
Clients looking to sell Australian dollars may wish to consider moving sooner rather than later to avoid disappointment. The pound has remained very weak for a sustained period and any positive Brexit developments could be the trigger for considerable sterling strength. Please get in touch with me if you would like to discuss your own requirement and how we can assist with any transfers and the timing of an exchange.
Australian home sales are released on Tuesday and should give some more insight into the state of the housing market down under whilst Australian business confidence figure released on Wednesday should give some idea as to how optimistic business is on the future of the economy.
To discuss your own currency requirement and how these events are likely to influence the rate of exchange for your won transfer then please feel free to get in touch with me James at [email protected]