Sterling rallied yesterday to a near four month high following some poor retail sales figures from Australia having shifted over three cents since the beginning of the month or just shy of a 2% swing. This shows how much the market can shift and reiterates how important it is to keep in touch with your broker who can contact you when the market spikes.
Recently this pairing have been having somewhat of a tug of war with neither really looking to give way. For me I feel this trend will continue short term and I would not be surprised to see a correction towards 1.80 making the current buy levels attractive. Longer term I believe the pound will see further upside with the prospect of rising interest rates and the RBA still citing concerns over the strength of the Aussie.
This morning the pound is losing some of the gains seen yesterday having moved in excess of 0.2% since the open. Today is relatively quiet being independence day in the US and little data from the UK and Australia to note.
To get further insight into the current market trends and data sets that could affect the AUD then please email Mike at [email protected]