Will the RBA cut be the first of many? GBP/AUD exchange rate forecast

AUD GBP Sees Strong Support with Sydney Reopening

Following the recent interest rate cut by the Reserve Bank of Australia to 2.75% will this see the first of many throughout the course of 2013? For me I would certainly not be surprised to see another quarter or half point cut by the end of the year but this may well depend on the economic activity/output from China. Recent figures from China have been much softer than late and this may prove a worrying concern to the RBA and I feel they will keep their cards very close to their chest about future monetary policy. What does this mean for the value of the Aussie? Since the start of March we have seen the pound rally nearly 5% and I for one feel this may well be the start of a revival for the pound and would look for moves towards 1.55 in the coming weeks. For this reason I would urge anyone selling AUD to look at their options whilst rates are still historically very favourable, for those buying I feel you will get more value for the pound as we head into the summer months.

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