Will GBP/AUD begin to test 1.60 once again?

The Australian Dollars strong performance against the Pound in recent times has continued since the turn of the year, with the Sterling to Australian Dollar exchange rate now closer to the 1.60 mark than 1.70 and therefore in the lower end of its current trend. I think that clients with currency requirements involving the Aussie Dollar should look back at historical levels when considering the transfer, as despite the Pound losing so much value over the space of one year, the currency is actually still up against AUD over a five-year period.

This offers a different perspective as the Pound isn’t up against many other major currencies over the same time period.

The Australian economy grew by 1.8% last year and it’s expected to grow by 2.4% this year. The Reserve Bank of Australia is unlikely to amend exchange rates in the short term, their nearest opportunity being this Tuesday, and commodities continue to go from strength to strength which is important for the export driven Australian economy. With this in mind I expect AUD to continue to perform well against the Pound, and I wouldn’t be surprised to see the 1.60 mark tested again soon.

Busy week for AUD exchange rates a possibility

The RBA’s interest rate decision and statement are out in the early hours of tomorrow morning, with a business confidence report out on Thursday at a similar time.

Then on Friday the Australian economy and housing market will be under the spotlight as Home Loans data will be released before the RBA’s Monetary Policy Statement will be heard.

No amendments to the interest rate are expected so Fridays statement is likely to be the week’s key event. If you’re planning a large trade involving AUD this week, it’s worth discussing your options with us in order to plan around these events. Call us on 01494 725 353.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.