Sterling Australian Dollar Update – 25th August 2015
August 25, 2015
Remember when the Australian economy was bubbling along nicely back in 2008-2011 while the UK, US and European economies were faltering and suffering from recession? Well, one of the main reasons for the Australia avoiding recession was China and Chinese demand for Australian raw materials – iron ore specifically.
Since the People’s Bank of China took the unprecedented move to devalue their currency 10-days ago, equity markets have slumped. A further 4% was wiped off Chinese stocks yesterday and there were also falls in the US, UK and European indices.
Fears of slowing growth and the bursting of the Chinese bubble, has affected the Australian Dollar’s performance. This is a result of an exodus by investors from emerging market currencies and continued downward pressure on commodity, energy and equity prices. The Australian Dollar, as a commodity currency, has therefore weakened against Sterling.
Yesterday, Sterling reached GBP/ AUD 2.24 for a split second – the highest level since March 2009. After hitting that level, within a hour the rate was back at GBP/ AUD 2.17. Volatile? Yes. Unpredictable? Yes. An opportunity? Certainly.
But how can you take advantage of such volatility? A market order that’s how. Market orders are simple, free and enable you to target a specific rate. As soon as the market hits that level, you trade automatically morning, noon or night.
The question is and where we can help, is at what level to place that order so to discuss your requirements, market orders and the current exchange rate, please don’t hesitate to contact us at enquiries@satfx.co.uk