This Australian Dollar report will examine the factors that could affect exchange rates in the medium term to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low yesterday.
|Currency Pair||% Change||Difference on £200,000|
Our clients watching the Pound to Aussie Dollar rate may believe that AUD has been struggling recently, and against the Pound you would be right but the Aussie hasn’t had such a hard time against other major pairs, and this is worth noting. The Aussie Dollar has actually gained by 2.5% against the US Dollar this year, and hit a 32-month high against it towards the end of January.
I think the Pound to Aussie Dollar rate will climb and test 1.80 once again, as despite a strong start to the year for AUD in general the Pound has been the stronger of the two.
Interestingly, many analysts now believe AUD will reverse this trend against the greenback as commodities are considered overvalued in some instances, and AUD has actually been more correlated to oil prices in recent weeks than iron ore prices as it traditionally would be, and with oil prices beginning to turn after such a strong January many predict further falls for AUD.
It has the potential to be a busy week for AUD exchange rates this week with a number of key releases scheduled outside of our trading hours.
Please remember that if you would like to plan a trade outside of our core hours you can set up an automatic one should your target level be reached, so do make us aware of your plans sooner rather than later so we can help assist you with this.
Early tomorrow morning Retail Sales, Import/Export figures as well as an interest rate decision will all be released. There is no change expected in the interest rate decision but there may be clues to future plans in the statement afterwards so planning around this time is worthwhile.
There will also be a monetary policy meeting on Friday morning which again could move markets depending on what’s said. The RBA recently suggested that no rate hikes are on the horizon so any changes to these plans are likely to impact AUD exchange rates.
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