Sterling has rallied back above 1.48 against the Australian Dollar for the first time in nearly 6 weeks, will we see the pound recover to 1.50? Following the poor growth forecasts released by China the AUD has fallen nearly 3 cents in just over 2 days and has created a short term opportunity for anyone in a position to take advantage. Long term this may well be a pattern that continues and particularly if we continue to see a slow down in China then the AUD is a currency that is likely to take a significant hit. However short term buyers of the dollar also need to keep a close eye on any further announcements from the UK with regards to QE (clues will be given tomorrow when the Bank of England release their latest minutes from this months interest rate decision). Any hint towards QE and the recent gains for the pound could be evaporated. Looking to next week watch out for the 25th April when the official GDP data will be released, if the UK can avoid the triple dip and the bank decides against QE then I believe we will see 1.50 by the end of the month.
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