The following report looks at current GBPAUD exchange rates and forecasts for rates post-Referendum.
GBP/AUD recovered back up towards 1.97 on the exchange yesterday and managed to hold its position overnight, following the release of the latest Reserve Bank of Australia (RBA) minutes. The RBA gave no indication that they were lining up another interest rate cut and remained fairly upbeat regarding the current growth forecasts and falling unemployment. They did warn that inflation was still too low but the general theme of the minutes was certainly a positive one and this may well help to curb any further loses for the AUD during today’s trading.
The Pound will still need further support if it’s going to make a run at 2, so all eyes will now switch to Thursday’s UK EU referendum. If we vote to remain in the EU then a move towards 2 is likely but given the RBA’s current stance and the fact the Bank of England (BoE) are committed to keeping Sterling’s value in check, I do not expect an aggressive spike above this level, regardless of Thursday’s result. I feel it is far more likely that we will see GBP/AUD fall back below 1.90 if vote to leave and therefore clients with any GBP/AUD positions may wish to protect themselves and not gamble on the outcome.
With an improvement in the Chinese economy recently helping to boost the Australian economy, those clients holding the AUD will feel far happier than they did a couple of months ago. However, due to the volatility on this particular currency pair we can see aggressive, unexpected moves without warning. Keep in close contact with your broker here at CURRENCIES.CO.UK, during what is likely to be an extremely uncertain few days.
Worried about how the EU Referendum could impact your exchange requirement? Speak to one of us today and we will be happy to assist you. Call our trading floor on 01494 725 353 or email me here for further information.
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