The Australian Dollar saw a slight rise yesterday against many of the major currency pairs, although this strength is being put down to AUD benefiting from traders buying against the Euro.
AUD being one of the biggest benefactors of Euro weakness has come at a good time for AUD, as it’s been losing value recently at quite a dramatic rate. The fall in the value of the Aussie Dollar has been welcomed by the Reserve Bank of Australia as they were concerned when the currency was considered overvalued. With the Australian economy being heavily export driven a weaker currency is a benefit as it will attract more business.
Those hoping for a stronger Aussie Dollar should consider this, as the RBA is unlikely to implement any policies to limit the weakening of AUD.
Earlier this week it was announced that wage growth is lagging down under, and it’s also been confirmed by the RBA that a rate hike this year is unlikely.
This leads me to believe that the Aussie Dollar will continue to drop in value, and I wouldn’t be surprised to see the AUDUSD 2-year low tested now that we’ve seen a 1-year low breached.
When compared with the Pound the Aussie Dollar has staged a slight fightback after hitting an almost 2-year low, but I consider the longer term trend to be downward also despite the UK’s political uncertainty.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.