Following successful trade talks between the US and China, the Australian Dollar has had a strong week. This market report looks at how this could change in the coming weeks. The difference in Australian Dollars you could have achieved when buying £200,000.00 during the high and low points of the past week is is highlighted in the below table.
|Currency Pair||% Change||Difference on £200,000|
Despite a strong start to the week for the Australian Dollar, the latest forecasts from some economists make for difficult reading for those hoping for a stronger Aussie Dollar in future.
The strength yesterday is likely to be due to the positive talks between the US and China, as the Australian economy could be caught in the crosshairs of a trade war between the two owing to both its economy and its close proximity to China.
Analysts at Dutch investment bank, Rabobank believe that despite yesterday’s spike, and despite the Aussie Dollar being the biggest loser vs the USD already this year (it’s lost 3.8% so far in 2018), the loss is set to continue with AUD/USD forecast to fall another 4%. Should their forecasts materialise then yesterday’s positive movements may be worth taking advantage of, so feel free to contact us here at FCD if you wish to discuss the current exchange rates.
The Pound has also been a major benefactor of the Aussie Dollars drop in value this year, with the Pound gaining by 2.75% so far this year although this figure was as high as 6.8% at its highest point around a month ago.
Rabobank also expect to see the Pound gain on the Aussie Dollar throughout this year, with a 10% gain earmarked by analysts in their latest report. Should this be the case the pair could be trading around the 1.94/1.95 mark later in 2018. I must add that I think this is particularly bullish.
Despite a quiet week for Australian economic data, I don’t think we’re in for a quiet week for AUD exchange rates. Yesterday’s movements have already demonstrated that the currency has the potential to move due to political unfolding’s in other parts of the world. If you’re planning a currency exchange involving AUD, do feel free to register your interest as there are a number of trade contracts that we offer both inside and outside of trading hours.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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