GBPAUD rates have climbed today as UK gains from speculation that the bank of England will need to raise rates sooner than initially thought. This is believed due to the high amount of positive data being released for the UK economy at the moment. There was also news from Australia earlier today which missed expectations for the Australians. Rates currently sit close to 1.79 and many people are asking whether this negative trend we have seen this week will reverse?
My thoughts are that they will yes. Over the last 3 months rates have really yo-yoed on the GBPAUD exchange rates as demand changes for both. Overnight AUD buyers will probably be further disappointed. This will come from China data including Retail Figures and Factory orders which are both expected to increase. This in turn will probably push the value of the AUD up making it more expensive to buy. The reason for this is because as the China economy increases in speed, the demand for AUD raw materials increase and therefore its economy and currency.
This means that clients looking at buying AUD this week may want to move today rather than tomorrow to avoid disappointment.
Longer term there is hope as UK data next week are expected to continue to show the GBP in a stronger light. So sellers move now and buyers, if you can, maybe wait till next week.
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