GBP/AUD rates recovered in line with other currency pairs in the latter half of last week, as Donald Trump’s victory in the US Presidential election race threw the currency markets into a state of shock and chaos. Sterling gained over 7 cents at the high and was trading above 1.66 before retracting slightly over the weekend. The pair current sit in the mid 1.65’s and this has provided those clients holding the Pound with a window of opportunity following a tough few weeks for the Pound.
To put it in context the spike would have gained those clients transferring £100,000 an additional 6,500 AUD on Friday compared to the same trade on Wednesday and this is a prime example of why it is key to remain in close contact with your personal currency broker here at currencies.co.uk, who can help guide you through these turbulent waters and help you to maximise any currency exchange, however large or small.
One of the primary reasons for AUD’s decline last week was the uncertainty Trump’s victory brought to the markets, which immediately sapped investor confidence. This caused a sell off of more riskier assets and commodity based currencies like the Australian Dollar, which in turn has strengthened Sterling’s hand.
With the pair moving back to a 4-week high now could be time to take advantage of the current market uncertainty as in reality the UK economy and the Pound remain as fragile as they did last week and conditions could change again just as quickly.
Looking ahead and it’s a fairly sparse week for Australian economic data, so the releases available could cause additional market volatility.
Overnight tonight we have the latest Reserve Bank of Australia (RBA) minutes, which are key for any economy. They will give us an insight into the central bank’s thought process and provide us with details of the current economic climate inside Australia, along with future growth predictions.
Further ahead and overnight on Wednesday we have a host of employment data, including the official unemployment rate. With the rate expected to remain unchanged at 5.6%, expect additional movement on GBP/AUD exchange rates if this figure comes outside of market expectation.
Clients looking to buy Australian Dollars have now been presented with the best opportunity in 5 weeks. Feel free to get in contact with me at firstname.lastname@example.org if youre considering make the most of the recent highs.
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