GBPAUD rates continue to trade above the 2 mark, the RBA have had further discussions about Interest rate cuts which could see further strength for the pair.
Sterling has been gaining against most major currencies lately but the spike upwards against the Australian Dollar has been one of the most noticeable. Whilst Sterling has spiked upwards as the polls put the ‘Remain’ campaigns in the lead, the Australian dollar has been weakening against a basket of currencies meaning that the spike upwards for Sterling has been magnified.
The Aussie Dollar weakness is mostly down to the recent Interest Rate cut made by the Reserve Bank of Australia (RBA). The rate was cut to 1.75% down from 2% which spooked investors and drove down the value of AUD, similarly since then RBA Governors have alluded to the possibility of further rate cuts if need be to stimulate the economy, with the most recent example of this coming from Glen Stevens on Tuesday which resulted in further AUD weakness. Aussie Dollar weakness has coincided with Sterling strength leaving the pair now trading comfortably above the 2.00 benchmark, and I’m now anticipating the pair to consolidate above this level with 2.00 to act as a support level.
Thin volumes will be expected for Sterling exchange rates on Monday due to the Spring Bank Holiday, which may work in the Aussie’s favour regarding GBPAUD as New Home Sales (MoM) are due for release in the early hours of Monday. If this figure comes out better than expected AUD could move upwards vs the Pound. I expect Thursday to be the busiest for AUD exchange rates as Trade Balance, Retail Sales, Imports and Export figures are all set for release in the early hours of Tuesday morning.
GBPAUD exchange rates continue to dominate at strong levels and those looking to buy the Aussie Dollar should take advantage of these rates. Call our trading floor on 01494 725 353 or email me here to discuss further.
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