The GBPAUD pairing has remained positive for the last few trading sessions following the NO vote last week in the UK. We have also seen speculation building that the Reserve Bank of Australia may intervene and weaken their currency as demand from China falls along with the demand for the AUD. It’s the central bank in Australia’s goal see the economy continually grow. One of the largest contributors for their GDP figures is the exportation of the raw materials across Australia and with the exchange rate moving the cost and demand for these products change. This is something that the bank is well aware of and we will continually see them change there views and commentary on future policy within the bank in an effort to try and keep the value of the AUD within a certain range.
It makes forecasting the GBPAUD very difficult meaning anyone with exposure to the currency pairing needs to accept the risks in waiting. There are regular SPIKES for buyers and sellers meaning that holding your nerve can be very worthwhile however painful and equally stressful at the time. For example this week we have more commentary due from the Reserve bank of Australia overnight on Wednesday which is a key event for anyone with a AUD need.
If you have exposure to this currency pairing and would like more information about what you could expect please feel free to get in contact on the normal number here – +0044-1494-725353