Today was another poor day for the pound as the Australian dollar shifted to its highest price against sterling since November 2013. The big move came following the decision by the European Central Bank to cut its base rate by 0.1%. This caused a big shift from the Euro and a drive into higher yielding currencies such as the Aussie which now sits just above 1.7450.
As with my colleague Colm, I would agree that this current shift is a good opportunity for anyone selling AUD. I for one feel the RBA will not feel comfortable with this shift and may look to talk down the Aussie to improve its competitiveness. I would also expect the pound to find some support following the Scottish independence vote, as I believe the result will be a no which should lend support to the pound across the board. The vote is scheduled for the 18th September.
Looking ahead tomorrow and it is a relatively quiet day as far as data from Australia is concerned but watch out for US non farm payroll figures at 13:30 as this important data release can impact the global market.
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