The Australian election is underway with 51 days of campaigning ahead. GBPAUD exchange rates have enjoyed highs recently off the back of a Brexit although the upcoming election could see tables turn.

Malcolm Turnbull nudges ahead in the polls

After 51 days of campaigning Australia’s election is on the horizon and will be held this Saturday. Australian Prime Minister Malcolm Turnbull has nudged ahead in the polls and he had a strong message today for the Australian people. He stated the Labour party want to increase the deficit but at the same time increase taxes. You don’t have to be an economist to work out this doesn’t make sense.

Regardless that Malcolm Turnbull has nudged ahead in the polls, the Australian Dollar could come under pressure this week due to the volatility. Therefore, I expect the Australian dollar could stop making gains against the Pound until the election is over. As long as Malcolm Turnbull is reinstated I believe this will provide support for the Aussie, consequently GBPAUD will continue to fall.

Interest rate decision next week

Australian Prime Minister Malcolm Turnbull has already stated he will meet with the New Zealand Prime Minister after the election to discuss the ‘Brexit’ and the potential risks to the economy. Next week Australia have their latest Interest Rate decision and the ‘Brexit’ talks could push the RBA into cutting interest rates further if they need too. If you have Australian dollars to sell in the short term I would trade before the Interest rate decision just in case a shock cut occurs.

For Australian Dollar buyers a popular contract at the moment is a forward contract. This is where you can lock into today’s exchange rates but pay later for it. By doing this you do not have to worry about the rates falling further because British politics are in such a mess. For further information, email me directly on drl@currencies.co.uk.

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