With sterling having remained relatively flat against the Aussie for the past couple of weeks, sitting range bound between 1.73-1.74, what is in store the AUD this week?
Beginning tomorrow we have the Reserve Bank of Australia releasing their next interest rate decision and subsequent statement. Recently the RBA have been steadily cutting interest rates but I would not expect any rate change tomorrow, however watch out for any hint as to future policy, any indication that the RBA will look to cut in the future and I would expect the AUD to weaken towards 1.75 and possibly beyond. Tomorrow will also see the release of Australian retail sales figures, these are expected to show an increase and could lend support to the Aussie prior to the RBA meeting.
Looking further forward I still believe there is more to value to come for buyers of the dollar. I would expect the RBA to continue to look at monetary easing and with the UK releasing much better data of late I would expect the trends to continue in favour of the pound. To discuss the current market trends and how this may affect your foreign exchange then please do not hesitate to contact the office on 01494 787478 or email me direct at [email protected]