Are we seeing a window of opportunity for Australian Dollar sellers? My opinion is yes.
This week has been a choppy affair for those involved with the GBP-AUD pair, as initially the RBA (Reserve Bank of Australia) cut its interest rate on Tuesday. Although this had initially been priced in to the exchange rate and pushed past 1.70, the week has closed out back in the late 1.60s. In the middle we saw a spike to 1.72 as Mark Carney talked up the Pound and Australian Dollar suffered as confidence dropped in Australia.
Looking forward I believe that 1.70 will provide a fresh level of resistance for GBP to test.
If you are looking to buy Australian Dollars then perhaps consider your position pre Wednesday. Wednesday has the minutes from the recent Bank of England meeting, and will give an insight to the thoughts of the remaining Monetary Policy Comittee (MPC) members. Should the MPC members have indicated that the do not like the Forward Guidance that Mark Carney has introduced, the lack of confidence may weaken Sterling. Therefore if I were selling Australian Dollars I would be tempted to get everything in place in readiness for Wednesday, as I believe we may see Sterling weakness to the 1.66 / 1.67 region.
Should you have an Australian Dollar requirement, be it buying or selling, please feel free to drop me a line.
Have a great weekend, heres to England winning the Ashes by Sunday night!!
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