The Australian dollar has come under a wave of new pressure as a result of concerns of the possibility of future trade tariffs being imposed from US President Donald Trump. Whilst the commentary coming from the White House has softened slightly overnight by suggesting that tariffs would only affect certain countries the uncertainty is still there and this is having a negative impact on the Aussie. There is a possibility of a trade war which could be damaging for the commodity currencies in particular which include the Australian and New Zealand dollars. You only need to look at how the Canadian dollar has been hammered over these developments to realise that the Aussie could weaken further. Any changes or policy implementations are likely to see the Australian dollar weaken and a move to 1.80 credible.
Selling Australian dollars
Those clients looking to sell Australian dollars for pounds are currently seeing some weaker levels with rates closer to 1.80 rather than 1.70 for the GBP AUD pair. Any opportunities for selling dollars are likely to stem from developments in the Brexit negotiations which remains the single biggest driver for sterling exchange rates. The hot potato of the moment is whether or not financial services will be included in any future trade deal between Britain and the EU. So far and the response from the EU has been frosty with the French finance Minister Bruno Le Maire stating that there is little chance of a trade deal being included in the deal.
Whilst this uncertainty continues should mean some good opportunities for clients looking to sell Australian dollars. Any developments could see the pound weaken although I would be mindful that as talks move forward in the coming weeks the pound could start to rally if compromises between both sides are made. The pound remains weak against the majority of currencies as a result of Brexit and so clients may wish to consider moving sooner rather than later to take advantage of what are still attractive levels. My view is that it is only a matter of time before the pound rallies and potentially quite considerably. For assistance in trying to time your exchange the please get in contact.
For more information on the Australian dollar and how the markets movements are likely to impact on your own currency requirement then please feel free to email me at [email protected]