CEO Andrew Su answers questions on what the outcome of the US elections will mean for the Australian Dollar
Compass Global Markets, one of IEC’s key sponsors and forex partners, hosted the Awards finalists to celebrate Diwali at their office on Bourke Street in Melbourne on 27 October. Compass Markets CEO Andrew Su, COO Michael Sarpi, and senior corporate FX dealer Priyanka Mehta were present to personally thank the company’s association with IEC and Indian community in Australia. Compass Markets is a leading forex specialist used by many businesses in the community. The event was attended by most finalists of the IEC Awards 2016. Also in attendance were IEC chairperson Vinay Sharma and IEC chief jurist Vijaya Vaidyanathan.
Compass Global Markets was formed in Sydney by a group of financial market specialists and investment bankers who wanted to create a business model that would revolutionise the way consumers and businesses undertake international money transfers and increase knowledge of the way the foreign currency markets work. Compass Global Markets is focused on developing strong banking relationships, utilising the latest technologies, and recruiting the most experienced people to offer clients an unparalleled combination of security, competitive pricing and incomparable service.
Compass Global Markets has a huge range of businesses from the Indian background dealing with them for their foreign exchange requirements.
Their executives have diverse experiences ranging from positions including Spot FX Trader, FX Options Broker, Corporate FX Sales and Money Market Sales just to name a few. Their experience in the financial markets, combined with their vast financial markets networks is what differentiates the company from its competition. Compass Global Markets is a subsidiary of Compass Global Holdings Pty Ltd which provides payment products, foreign exchange contracts and derivatives.
At the Diwali function held to meet and greet with IEC members before the Awards, Andrew Su took time out to take questions from the audience on hedging and other matters.
When asked if businesses should be looking to hedge in these current circumstances, Mr Su said it was not a simple “yes or no answer”. “It depends on business needs, the availability of cash if there is an adverse move in the currency, and whether one can afford to pay the higher price. For exporters it depends on how their business will cope with less cash received,” he said.
“Also what are your competitors doing? What will an adverse move do to your margins? These and others are all questions you need to answer before you can make a decision. Remember hedging may sometimes add risk,” said Mr Su.
When asked what can be expected from the US elections, Mr Su said that if Hillary Clinton is elected, the USD will initially go up, and so the AUD could fall. “Once this is out of way the USD will continue to track movements in US interest rates,” said Mr Su, adding that if Donald Trump is elected the markets would initially see a sell-off in the USD, so the AUD could go up quickly. “Once the initial volatility fades and we understand more about his political agenda, I believe USD will go up and AUD will fall. Therefore once markets settle after the initial move, the markets will continue to follow economic fundamentals which will lead to a stronger USD and therefore a weaker AUD,” he said.
To view photos from the event click here.