fbpx

AUD-USD State of Play – Brought to you by AFEX

With inflation talks and a resurgence of Covid infections, the USD has gone on a strong run of late. Global stock markets have been hurt with a heavy risk off sentiment resulting in a flood back to “safe havens”.

Banks are still forecasting high 0.70’s for AUDUSD in the medium term which is interesting and as we’ve come to learn over the last 12 months cannot be relied upon.

At the bottom is a chart of the past 12 months performance and we are currently around an 8-month low.

For Importers (USD buyers) some form of hedging that takes advantage if the rates move higher in line with forecasts, in this market looks to be the safest bet, as currencies and markets as a whole are sitting on a knife edge.

For Exporters (USD sellers) it does feel like the market sentiment is in your favour, but if forecasts such as NAB/BNZ of 0.80+ come to fruition then you will wish you booked some hedging at current levels. So again, some form of hedging that takes advantage of a move lower in the rates, would be the safest bet as things currently stand.

For more information click AFEX

Alternatively speak to a human about your Global Payments and Risk Management Solutions
Yohan Huria​ – Business Development Manager for AFEX
Telephone: +61 7 3183 9805 | Email:  yhuria@afex.com

Personalised Freight Solutions is an international freight forwarding company, simplifying the movement of cargo globally. Our services include import and export, sea and air freight, border clearances, and on ground trucking at both origin and destination.
165-171 Broadwater Terrace, Suite 8
Redland Bay
Queensland
4165
Australia