As with the euro the pound has recently seen a consistently strong run against the Australian dollar having rallied in the region of 6% since the end of August. On a £200k money transfer this is
a difference of over 18,000 AUD
Much of the moves can be attributed to global market uncertainty, particularly surrounding the US and North Korea.
Following the developments earlier in the week there has been a big risk off for higher yielding currencies, including the AUD, NZD and ZAR,
Theses currencies can be heavily influenced by investor and market sentiment and will often perform poorly when investors and major financial institutions take stock and become more risk averse.
Heading into next week we may see further volatility for the Australian Dollar as Tuesday sees the latest interest rate meeting and accompanying monetary policy statement from the Reserve Bank of Australia.
Recently the central bank has been fairly dovish and tight lipped surrounding any interest rate movement, should this trend continue we could see further AUD weakness on Tuesday. Of course any hint towards a rate hike and the dollar could strengthen against most majors.
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Labels: Australian dollar, best exchange rates., Currency, GBP/AUD, Pound