The RBA's decision to cut Interest rates has backfired as retail figures from March came in stronger than forecasts predicted, AUD grew 1 cent against sterling off the back of this. GBPAUD has shown huge swings in the last 30 days.
Earlier this week we saw a huge spike in favour of clients buying AUD due to the Reserve Bank of Australia cutting interest rates for the first time since 2015 in a bid to boost economic growth and stave off the risk of falling inflation. As a result we saw the Pound hit a 2-month high against the Aussie and an excellent opportunity to take advantage of.
During the early hours of this morning however, we have seen the AUD claw back over 1 cent against Sterling after retail sales figures for March came in better than analysts had forecast. This boost in economic growth could mean that the chances of further interest rate cuts this year have lessened which may bolster the Aussie’s strength in the future.
Any clients with an Aussie requirement should keep an eye out for the RBA’s Monetary Policy Statement in the early hours of tomorrow morning as this will also give us an insight in to their planning for future policies and this is likely to create volatility on GBP/AUD rates. We offer contracts that can help you limit your exposure to market volatility from events outside of office hours, with the use of a limit order being the most popular option. Contact your broker here today to find out how this contract could benefit you.
**Breaking News** It has been announced this morning that the outgoing RBA Chief Glenn Stevens will be replaced by Deputy Governor Philip Lowe.
Thank you for reading my AUD report this morning, we offer a number of contracts that could protect your exchange requirements in circumstances like these. Speak to one of our brokers today on 01494 725 353 or email me here.
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