Sterling has hit the highest levels we have seen against the Australian Dollar in a number of months, as progress is reportedly going well with Brexit talks for the U.K and risk appetite around the world is dropping like a stone.
The Australian Dollar really is having a tough time on the markets this week; there are growing concerns on how the emerging market currencies are performing which is leading to a huge sell off of so called ‘riskier’ currencies and the Australian Dollar is starting to feel the pinch from this too.
One of the main reasons behind these problems is the consistent rate rising and hard interest rate hiking from the U.S.
This is essentially making the U.S Dollar more attractive and investors are starting to move funds out of their riskier assets and into the Dollar due to it now being more attractive and showing a reasonable return with much more stability.
In terms of interest rate hikes the RBA (Reserve Bank of Australia) still appear to be quite a way off from hiking. The trade wars that China are facing with the U.S, paired with China being a huge trade partner for Australia means everything is pointing towards a further headache for the Australian Dollar as we head towards the end of the trading year.
I have been commenting on this site for a long time now that I feel the Australian Dollar could be set to struggle, and although this has taken longer than I thought it does seem like this is now all starting to happen, so for those with an Australian Dollar exchange to carry out in the near future this is a currency pairing you really need to keep an eye on.
The rates move 24 hours a day and releases from the U.K and Australia can come out whilst you are asleep, so if you do need to carry out a purchase of AUD or you wish to sell AUD to buy GBP, having a currency specialist helping stay on top of developments is key.
We have various options available to you that can help you catch spikes overnight and that also help you make the most of any pending transaction.
Feel free to contact me directly using the form below and I will be happy to explain the various options you have available to you, we can help secure fantastic exchange rates and also offer a range of market tools that can also save you a great deal of money too, I look forward to hearing from you.