Australian Dollar strength has continued against most major currencies, seeing yet another week of gains against U.S dollar, euro and sterling.
AUD USD is currently nestled just below 0.70 as an interbank rate of exchange and is closing in on the highest level seen since January where the rate managed to breach 0.70 at the start of the year.
There is no hiding the fact that America has plenty of issues at the moment, not only the struggle with Covid-19 and the many thousands that are unfortunately losing their lives, but also now the country is entering an extreme level of political instability as tensions rise of the George Floyd homicide.
Because of these issues and the fact that the U.S economic performance has slumped like many other economies around the globe, we are starting to see a run of money coming out of the Dollar and one of the roads that seems to be taken is a flight to the Australian Dollar.
Australia has managed to tip toe around any severe issues with Coronavirus and currently the economy is starting to move forwards as the lockdown exit strategy progresses, on the contrary to many other areas around the world.
Investors had said that those economies that were first out of the gates would likely do well as the world tries to put phase 1 of COVID-19 behind them, and we are seeing those words ring true as investors and speculators head to the Australian Dollar, making it stronger and more expensive to buy.
It is a similar story for Australian Dollar exchange rates against Euro and the pound. With the recent climb against Euro levels are close to their highest since February and with GBP we are seeing the best rate to bring Australian Dollars back into pound since October, which is great news for those that have been waiting to bring their Australian Dollars back into Sterling.
Will This Australian Dollar Strength Continue?
This really is a difficult question to answer, but one that a lot of my clients that need to exchange are asking at present.
The issue is currently that we are not just reliant on economic performance and economic data for currency movements, but we are also in the middle of a global pandemic and have severe unrest in one of the biggest economic players in the world, which appears to be spreading globally too.
It does seem that the Australian dollar could still remain in fashion for the short term but this could quickly change if sentiment changes and that is somewhat unpredictable.
In the middle of March Australian Dollar exchange rates dipped to multi year lows against USD, EUR and GBP as the pandemic swept across the world, so a second phase with any size to it could see a dip in the value of AUD exchange rates quite rapidly.
On the GBP and EUR side of things, a Brexit deal or solid progress towards one may see strength for both of the currencies against the Australian Dollar, should the two sides still not be deemed to be making progress and an extension is not requested by the U.K, which they have to make a decision by the end of the month then this could weaken both currencies further.
Transfer to Carry Out?
If you are looking to make a foreign exchange transaction in the near future and you would like the assistance of a proactive and knowledgeable trader in these testing times then feel free to get in touch with me directly by filling in the enquiry form below and I will be more than happy to discuss your specific situation and what market movements may lie ahead that could impact the cost of your transfer.