GBP has struggled during Thursday’s trading, with losses against all the major currencies. These losses are particularly apparent against the AUD, with the negative trend pushing GBP/AUD rates down to 1.8344 at today’s low. Looking at today’s economic data releases and there is nothing which indicated Sterling should have dropped, so it may be the markets realigning after the aggressive Sterling spike we’ve witnessed over the past couple of weeks.
GBP rates have performed well against the AUD of late with a dramatic 15 cents swing over the past few weeks, before today’s correction. Whilst the Reserve Bank of Australia have been keen to see the AUD lose value in order to boost exports, I doubt they anticipated the major drop we saw following the recent poor Chinese data, which helped to push GBP/AUD rates back above 1.85 at the recent high. It is likely the markets have now realigned after an over correction, although I do not anticipate this trend to continue for long.
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