RBA keeps rates on hold – GBP/AUD close to 1.59, year highs for buying AUD

AUDGBP Advances from 2020 Support Level

In the last month the pound has rallied close to 8 cents against the AUD following weaker sentiment from China, and the Reserve Bank of Australia cutting interest rates in May. This is creating some great opportunities for AUD buyers, will it continue?

Overnight the Reserve Bank of Australia kept interest rates on hold – some analysts had been expecting another interest rate cut (something I believe could well happen in the next couple of months). Even though rates have remained at 2.5% the AUD has fallen to fresh year lows agains the pound and crept close to 1.36 against the Euro.

For me I believe the currency levels will stabilize around the 1.60 mark (GBP/AUD). In the UK we have the threat of further QE, something I feel could happen in July – for this reason I believe any trade around 1.60 should be viewed as an opportunity. Should you wish to take advantage then please contact the office on 01494 787478 or email Mike and I will gladly source you a live trading price. I can be reached on [email protected]