Looking back: 2019 was a bumpy ride for currency transfers to the Aussie dollar.
It is always difficult to understand the right time for Currency Transfers. Looking back over 2019, we saw the Australian Dollar fluctuate wildly against the British Pound, with AUD/GBP dropping to lows of £0.51 and soaring to highs of £0.56. Movement against the Euro was more moderate, with AUD/EUR moving between €0.63 and €0.60 as the Eurozone’s economy continued to flag.
In the UK Brexit generated volatility for the Pound, but Sterling rallied at the end of the year after the landslide victory for the British Conservative Party – the party’s “no ifs, no buts” approach to Brexit provided a much-needed uplift for Pound Sterling.
On a global level, ongoing US-China trade concerns acted as a drag on the risk-sensitive Australian currency, while dovish central bank policy and a slowing global economy weighed on risk appetite.
But how will the ‘Aussie’ fair in 2020? And how can you make the most of your upcoming currency transfers?
Let’s begin by taking a look at some of the factors that will move the Aussie this year.
Looking ahead with 2020 vision. Clouds on the horizon for the Aussie?
The US and China finally signed a phase one trade agreement in mid-January, but investors are concerned that the deal doesn’t go far enough and feel that subsequent phases could produce more challenges.
As a result, US-China trade relations are still having a negative impact on risk appetite and demand for the Australian Dollar.
All eyes on the Reserve Bank of Australia
Turning to Australia’s domestic developments, Aussie investors will be paying close attention to the Reserve Bank of Australia’s (RBA) policy decisions this year. Economic data will continue to point the way for Australia’s economy, and any sudden downturns in the ever-volatile Australian employment and construction sector could presage further stimulus measures from the RBA.
February’s interest rate decision will give us a foretaste of the year ahead and an indication of which way policymakers are likely to move.
Impact of Australian Bushfire Crisis
The fallout from the Australian bushfire could be felt for months to come, with the potential impact on national growth still being calculated.
If economists estimate that the crisis will have a significant impact on Australian GDP this year the ‘Aussie’ could be driven lower against its rivals.
Maximise your currency transfers with TorFX
If you have currency transfers to make this year and want to get ahead of all the potential volatility of 2020, we recommend having a chat about your requirements with a leading currency transfer provider like TorFX.
TorFX have been helping people save time and money on their currency transfers since 2004 with excellent exchange rates, no transfer fees and personal account management.
If you need to move money abroad in 2020 picking the right time to make your currency transfer could leave you thousands better off. Benefit from the support of a leading currency provider and see how much you could save!
For more on Australian Currency check out our article below;