GBPAUD rates have had a voile week with opportunities for buyers. At the beginning of the week we had the reaction on the market from the Bank of Australia’s comments last week. This was when they said that the rate was overvalued by several cents. This gave buyers a great opportunity. Since then rates have dropped a little and this was really put down to UK economic data which missed expectations. This means that levels are down slightly on the highs however still looking rather attractive.
When making a decision on when to trade you first have to understand where we are, so.
- Ignoring Monday GBPAUD rates are at a near two month high.
- Ignoring 6 trading days the levels available now on GBPAUD are at a 4 month high
- Ignoring 6 trading days and the first three months at the beginning of 2014 we are at the highest level seen for 5 years!
Saying the above however people will always ask – Will it get any higher?
Well I think it will yes but we aware of the risk you take by waiting. Meaning if you are close to your target you may think it may not be worth the risk.
7 day forecast
GBPAUD rates will probably trend upwards in the favour of GBPAUD traders. Meaning timing a trade well could put more $ in your pocket. Tuesday is the busiest day with AUD Interest Rate Decision meeting minutes. This will have commentary about what they discussed a few weeks ago and could easily push rates higher PLUS UK data is expected. UK data has generally been moving in the right direction and could easily help get a better price.
For a full break down and to talk through what is happening feel free to contact the author – STEVE EAKINS – via his email address at [email protected]
Have a good weekend!