Will GBPAUD exchange rates stay above the 2.0 marker? Tomorrow Glenn Stevens of the RBA will announce his Interest rate decision which may boost rates further. In the last month we have seen swings of 4.8% for GBPAUD rates.
In many of my previous articles I have been predicting that Sterling would break past 2 vs the Australian Dollar and last week finally saw the rates break past this level of resistance for the first time since early February. The recent interest rate cut and the uncertainty of the upcoming elections on July 2nd are likely to cause further problems for the Australian Dollar.
Even though the political and economic landscape in the UK is unclear with the Brexit talks it appears as though the AUD is feeling the pain more than Sterling. I would not be surprised to see a brief fall back below 2 vs the Pound as short term profits will be taken but in the medium term I think we could break even higher.
Reserve Bank of Australia’s governor Glenn Stevens will take centre stage tomorrow and any hints of a further interest rate cut could provide the support for Sterling to trade even higher vs the Australian Dollar. I think his comments will be rather dovish as it appears to be in the interest of the Australian economy to have a weaker AUD and his previous attempts of jawboning have helped to weaken the AUD without changing policy. Therefore, if you need to buy Australian Dollars with Sterling it may be worth seeing what happens towards the end of the week.
GBPAUD rates may increase further depending on the outcome of tomorrows Interest Rate decision. If youd like to know further information on this event and how it could impact you, email firstname.lastname@example.org.
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