The Australian Dollar has rebounded against the Pound recently with GBPAUD rates hitting a 6-week low. A quiet week for Aussie news but certainly an attractive time for Aussie Dollar sellers.

GBPAUD trading at a 6-week low

The Australian Dollar is going from strength to strength when compared with the Pound, with the pair now trading roughly around a 6-week low making it attractive to Aussie Dollar sellers.

Whilst the pair have been trading within a large range this year of almost 25 cents, current levels are more favourable for Aussie sellers than buyers, although personally I believe that Pound has further to fall versus the Aussie.

With the recent decision by the Reserve Bank of Australia to cut interest rates down to 1.75% now out of the way, the better than expected GDP figures, the increasing commodity prices and perhaps the most important factor being that the Chinese economy is now on the rebound, I expect the Australian Dollar to gradually strengthen throughout the year when compared with Sterling, irrespective of the Referendum’s outcome.

Those with an Aussie dollar requirement may wish to consider making that conversion sooner as opposed to later as fundamentally I see little reason for the Aussie to weaken to levels back above 2.00, and gathering from the recent Minutes speeches from the RBA, a further Interest Rate cut is unlikely.

The week ahead for the Aussie Dollar

With no Australian economy specific news releases scheduled for this week we’ll have to wait until next Tuesday for a potential market mover. The RBA’s Minutes speech is scheduled for the early hours of Tuesday morning and this could affect AUD exchange rates if anything out of the ordinary is announced.

Are you looking to sell Aussie Dollars for Sterling? The EU referendum has created some opportunities that may not last long. Call our trading floor on 01494 725 353 or email me here to make an enquiry.


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