In the last newsletter we suggested that it would be “an opportune time” to convert funds into Australian dollars as the AUD dipped below USD60c.
This has proven to be the case, with the AUD now rebounding to over USD69c at the time of writing. This isn’t a surprise given that Australia has fared so well with COVID-19 management, is now relaxing restrictions and provided terrific financial support to protect the general economy. Other countries haven’t done nearly as well as Australia, which has the envious record of just 102 COVID-19 deaths as at 2nd June, compared to the USA which has over 100,000.
The result of this will see less economic fall-out than other areas, which logically leads to a stronger AUD. This situation may remain for some time given the slow progress and other disruptions being faced in other major economies.
That said, it is hard to see anything in the world being easy to predict for some time, so I remind everyone that currency remains highly speculative and moving funds should usually be done for a purpose rather than in hope of gain.
There still remains many quality Australian property opportunities and shares at good value so the motivation to send funds to Australia will likely remain in the short term, but don’t be surprised to see the AUD move back above USD70c in the short term.
You can keep up to date with currency markets through our SMATS FX weekly updates posted in our News section on the SMATS website.
