GBP/AUD rates have dipped below 1.80 for the first time in a number of weeks, providing AUD sellers with some much needed respite after the recent four year lows. The AUD has been hampered for some time following the RBA’s decision to cut interest rates with the hope it would drive the AUD’s value down and in turn boost their flagging export industry. Whilst the AUD has weakened considerably against GBP, a slowdown in China’s demand for their raw materials has caused further market concerns over the direction of the Australian economy, with unemployment rising and growth forecasts weak in the short to medium-term.
The RBA have tried to alleviate some of the market concerns by announcing that there would be no further rate cuts and with the UK’s economic data showing mixed signals over the past few weeks, has helped push GBP/AUD rates down to the current levels.
I still believe the current levels offer some excellent buying opportunities, especially when you consider it was only 18 months ago that rates were down around 1.45 on the exchange.
Anyone with a GBP/AUD currency requirement should keep a close eye on the release of tomorrow’s UK Retails Sales and Friday’s GDP figures., both of which are likely to be key market movers.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our exchange rates with your current provider, then please feel free to contact me directly at [email protected].