The Australian Dollar has seen some signs of strength recently as it appears as though the Reserve Bank of Australia may not be looking at cutting interest rates as soon as previously expected.
The Trade Wars between the US and China also appear to be getting closer to a resolution and as China is Australia’s largest trading partner this has helped the value of the Australian Dollar.
Australian is also a huge producer of Iron Ore and its main export market is China. Australia has approximately 65% of the global market and any price change in the value of the commodity will often affect the value of the Australian Dollar.
Chinese demand has started to increase for the commodity and rumours are increasing that many Iron ore mines in Brazil are due to be closing. This means that global supply will reduce which will in theory increase demand for Australian iron ore.
However, although the news is good concerning the news above, the risk going forward is that of the Australian election which is due to take place in just over a month’s time.
Labour are doing well in the polls so a change in leadership could see the Australian Dollar come under pressure once again so make sure you keep a close eye out on the election campaign as this is likely to have a big impact on the Pound against the Australian Dollar.
Meanwhile, the ongoing uncertainty caused by Brexit has caused the Pound to weaken marginally against a number of different currencies which is good news for anyone looking to buy Pounds at the moment as GBPAUD exchange rates are at the lowest rate in two months.
If you have a currency transfer to make and would like to save money on exchange rates then contact me directly for a free quote and I look forward to hearing from you. Having worked in the currency industry since 2003 for one of the UK’s leading currency brokers I’m confident that I can save you money compared to using your bank for the transfer of Australian Dollars.
Tom Holian [email protected]