GBP has lost ground against the AUD over the past couple of days, moving back down towards 1.85 at the low. This move is in stark contrast to the recent trend, with Sterling having started the week putting pressure on 1.89. Sterling has continued to perform well against the AUD for some time but it does seem as if the recent spike may be nearing an end, with a lot of resistance being met on the exchange between 1.89-1.90.
Australian Gross Domestic Product (GDP) figures were released overnight and seemed to back up this theory, with figures coming in better than expected. This should help to build market confidence in the AUD, which has been clearly lacking for many months. However, despite this more positive news for the Australian economy I do not anticipate a major turnaround for the AUD in the short-term. There remains an on-going concern over the demand in China for Australia’s raw materials, a scenario that has allowed the Australian economy to flourish over recent years. There were also the comments made recently by the Reserve Bank of Australia (RBA), which confirmed they still felt the AUD ‘remained high by historical standards’. This would indicate they are happy for the AUD to lose further market value, with the hope this will improve and sustain their export industry.
If you have an upcoming AUD currency requirement and you would like to be kept up to date with all the latest market developments on this or any other currency pair, then please feel free to contact me directly at [email protected]. Alternatively, you can call our trading floor on 0044 1494 725 353 and ask for Matt and I will happily provide you with a live exchange rate.