Australian Dollar starts slow and improves aganist the Pound

Hi All,

The Australian Dollar is staying very volatile with the AUD exchange rate but showed a lot of fight late today climbing back over the 0.7000 against the US Dollar and the pounds to Australian Dollar exchange rate heading back to 2.4300 which was last weeks low.

The range on the pounds to Australian dollars range is what is alarming me the most as we started the day at 2.5100 and almost 3% lower. These ranges are normally what emerging currencies trade per day, not the humble Aussie dollar. Seams to me that the idea that Australia is a commodity currency and as the world slips into a recession the Australian economy is going to suffer is the main story - but wait the Australian Government hasn't yet to bail out a bank never mind 3-4 banks, our housing market is starting to pick up, you can still get a mortgage.

If I was a gambling man and it is fair to say i am by the nature of my job, the Australian Dollar may weaken yes! but against the US dollar, Swiss Franc, Euro and Japanese Yen, not against the Pound. The UK seams to be rewarded for the prompt action of the British Government rather than a sound economy!

The UK economy is one built on sticks - the banking sector delivered record bonus after record bonus that helped fuel London property prices and helped the economy boom. But what is going to happen now those bonuses are gone and the Governments non-dom tax hits home? Bankers and those in Hedge Funds are leaving the capital and those staying are going to rein things in. Money is leaking out of the loop fast and it will filter down the chain even faster as the banker earning £300k lets his nanny, cleaner and Aston Martin go as their income comes back under £60k as banks fail to pay bonuses this year. And this is only one industry the follow on effects will be huge!!!

Take care when you Buy Australian Dollars not to be to greedy the - remember that the exchange rate only 2 weeks ago was almost 2 to 1 and 2.5 to 1 is the bargain of the year as the Australian economy proves jow robust it actually is.

Good Luck and buy for now

Damian George
IMS Foreign Exchange

Buying Australian Dollars call for the best exchange rates + 44 207 183 2790