The Pound continued its decline against the Australian Dollar throughout last week, as it has done for much of Q3 this year.
The decline has accelerated since the BoE begun implementing their debt buyback scheme, making it harder to time Sterling repatriations, as it's difficult to tell how much further the Pound will fall.
This is where discussing strategies with your assigned broker could offer you the chance to maximise your currency transactions potential. Options include staggering your entry level over a period of time, or by placing a limit order at your target price to name just a few. Do get in contact if you would like to discuss any of these options further.
With GBP/AUD hitting a 2016 low of 1.6763 during Friday's session, I think theres a chance we could see some support for Sterling (GBPAUD is currently up 0.35% as of 7.45am), as is quite often the case once new lows are hit. However, moving forward Im expecting the Pound to continue its decline.
Theres talk of further interest rate cuts from the BoE, and in a world of record low interest rates I expect high yielding currencies likes AUD, NZD and many of the Asian currencies to continue to perform, as investors seek high yielding returns on their funds.
In the early hours of Tuesday morning the minutes of the Reserve Bank of Australia meetings will be published. This will offer an insight into their recent decision to cut interest rates, and how the members voted. Then on Thursday Julys employment changes will be announced with both releases likely to create volatility within AUD exchange rates.
For more information on how this weeks economic releases could impact your currency exchange demand, call our trading floor on 01494 725 353.
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