AUD stabilises against the pound on the back of the UK GDP figures. (Ben Amrany)

AUDGBP Advances from 2020 Support Level

Since the start of 2013 the Aussie Dollar has consitently strengthened against the pound. The pound is currently down over 3% since the turn of this year and this mornings UK GDP figures did come out worse than what was expected. GDP was expected to have contracted by -0.1. The actual figure which shows the UK economy contracted by -0.3% This led to the pound weakening against a host of currencies.

We have seen the pound recover some of its earlier losses as the knee jerk reaction to the rates moved GBP/AUD down to 1.5069.

Looking forward I feel the negative data to come out of the UK will continue to hinder sterling strengthening over the next month or two. I feel that the pound may test the recent lows of 1.4960 at some point but there will be a big resistance level of 1.50.

At present we are seeing some of the best selling Aussie dollar rates for months. You may be prudent at looking at your exchange in the near future to capitalise on the favourable rates. If you feel that you want to see if the Aussie will strengthen further be cautious, if the Reserve Bank of Australia decide to cut their interest rates to help weaken the currency to help assist their exports then we may see the AUD weaken by 2-3% should this occur.

If you need to buy the Aussie with the way the pound has fallen so much I dont think we will test the all time low of 1.48 and if you are patient we may just see some strength in the right direction for you come 2-3 months down the line.

If you need to buy or sell the Australian Dollar please feel free to contact me and we can discuss the options that are available to you. You may email me with your contact details at [email protected] and I will contact you straight away.

Thank you for reading.

Ben Amrany