Aussie Still Gaining Versus Sterling (Colm Gilhooly)

Increase in Risk Appetite Helps Support the Australian Dollar

The Aussie is still gaining against the pound as the Bank of England havent changed policy today (which was expected) and the fears over the Scottish referendum grow (which wasn’t expected to be anywhere near this close).  Aussie data recently including GDP has been very good, and global confidence appears to be on the rise.  US monetary policy may also be getting closer to a tipping point as news Stateside has been improving.  We do have non farm payroll tomorrow and a strong showing from the American jobs market may boost global confidence further and increase the chance of the Fed becoming a bit more hawkish.  I would expect this to be Aussie positive.

In all I think this is a great selling opportunity for the Aussie versus sterling as personally I think that whilst the pound may weaken a touch further in the run up to the Scottish referendum with all the media panic, my gut feeling is that Scotland will vote no and the pound will rally back a bit in a few weeks.  Plus I think the Governor of the RBA, Stevens, will probably reign the Aussie back again if it shows too much fight.

With the ECB cutting interest rates in Europe- the Aussie has also rocketed versus the single currency too so brilliant news if you are sending money from Australia to Europe.

If you need to make a currency transfer and would like help to get the best exchange rate, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to help.