GBPAUD exchange rates have again risen back to above 1.80 following the Private Sector Credit data which was slightly lower than expected. For most of this month the Australian Dollar has strengthened against the Pound as GBPAUD hit their lowest rates in 4 months triggered by the news coming from China that more monetary stimulus could come soon. More growth in China is likely to lead to more demand for Australian resources which in turn could provide the Aussie with strength.
The Reserve Bank of Australia is due to meet tomorrow to discuss interest rates but I think there will be no movement for rates which in turn could see a small rise for the Pound. Another reason for the strength last week was because of RBA governor Glenn Stevens last week ‘failing to take a swipe at the Aussie Dollar despite its strength.’
Bank of England Governor Mark Carney is due to talk tonight at 6pm and all eyes will be closely watching on what he will say about the British economy including any mentions of how policy has affected Sterling exchange rates as of late.
On Thursday Australian Retail Sales are due out and expectations are for a growth of 0.3%, anything better could lead to Aussie strength.
If you have been reading my articles for a few months you will notice that I have been arguing that we could see Australian Dollar weakness but with the recent shift in data both from Glenn Stevens and a mention of Chinese stimulus I think we could now see Sterling trade lower in the short term.
If you have a currency requirement to make and want to save money compared to using your bank then contact me directly Tom Holian firstname.lastname@example.org