The Australian dollar has been struggling of late and is close to the lowest levels in a decade against its US dollar counterpart. The Reserve Bank of Australia only recently cut interest rates and further cuts are on the horizon. The central bank also hinted that other stimulus measures could be used in a bid to stimulate economic growth. Furthermore, the deputy Governor Guy Debelle earlier in the year stated that quantitative easing would be a good way to stimulate the economy. History tell us that if a central bank starts a QE program it causes the currency to devalue. For clients selling Australian dollars to buy another currency, its crucial that you keep an eye and understand the RBA next move. If you would like further information on the RBA feel free to contact me on the email below.
How will the Australian dollar perform against the pound?
Even though the Australasian dollar is set for a tough 12 months, the pound has problems of its own. Brexiteer Boris Johnson is the favourite to be the next Prime Minister and its clear that he will take a different approach compared to outgoing Theresa May. A crash out no deal Brexit is looking more likely by the day and consequently the pound is losing further value. As we approach the October deadline, if a deal isn’t in place I expect GBPAUD to fall.
For people that buy and sell Australian dollars on a regular basis or are looking to make a one off transfer, the currency company I work for can save you money. Feel free to send me the reason for why you are converting currency, the currency pair you are trading (AUDGBP, AUDUSD), and the timescales you are working to and I will send you my forecast and the process of using our brokerage [email protected].