The AUD has strengthened by over a cent against GBP during Tuesday morning’s trading, following the Reserve Bank of Australia’s decision to keep current interest rates on hold. Whilst it was anticipated that there would be no further cuts from the current level of 2.5% at this time, the markets seem to have taken this as a positive following this morning’s AUD strength.
GBP/AUD rates remain range bound between 1.70-1.74, with current levels offering some fantastic buying opportunities. Current trade levels are amongst the best we have seen over the past two years and although the Australian economy is not performing as well as it was at the turn of the year, it would be dangerous to just assume we will continue to witness Sterling strength. We have seen resistance met around the 1.70 mark and the major move will be dependent on a number of economic factors, including any indication of future rate cuts by the RBA and whether the Bank of England (BoE) will try to control Sterling’s value so that we do not alienate any of our trade arms.
Here at Australian Dollar Forecast we have a dedicated team who can help you navigate the currency markets and provide the key market analysis around any transfer. If you do have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or just wants a rate comparison with your current provider then please feel free to contact me directly at [email protected], or you can call one of the team on 0044 1494 787 478.