AUD weakness provides SPIKE – Buying AUD – Selling AuD – STEVE EAKINS

AUDGBP Tests 0.5600 Once More as BoE Cuts QE

At the Reserve Bank of Australia Interest Rate Decision yesterday they stated “that a weaker currency was likely needed for balanced growth.” This morning we also saw their economic growth slow to 2.3% well below the expected figure of 2.6%. This has created a SPIKE pushing GBPAUD levels up towards levels not seen since 2010. GBPAUD rates have rallied over 20% since March securing AUD $72,500 more with a £200,000 purchase. This SPIKE represents a great opportunity for AUD buyers.

My view is that the trend will probably continue for the Pound this month; however it also be wise to respect and take advantage of high value of the Pound currently. If I was in the market I would be very tempted to secure my trade and take advanatage of the high value of Sterling currently. Before month end we may see the rates slightly up or down a lot when the bubble pops.

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