GBP/AUD at a near six month high (Mike Vaughan)

AUDGBP Slumps Again as Sterling Gains Continue

Sterling has recently seen some what of a resurgence against the Australian Dollar with the range between the high/low over the past three weeks from 1.724 to 1.846 or just over 7%. Much of the moves have come about during and following the Scottish independence vote however as the dust settles sterling is still finding support a trend I believe could continue, although I do feel a level of resistance around 1.85 will be seen.

For me I still feel Glenn Stevens and the RBA are uncomfortable with the value of the Aussie and this could weigh further on the dollar. I do believe the market will now go through a period of consolidation and I would look for levels to sit between 1.83-85.

Should you be buying AUD the market is currently trading at close to a six month high and having rallied over 7% since the 8th September should you be buying AUD, although there could be more upside for sterling, I would still seriously consider your position and possibly hedge your bets as the shift has been significant.

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