GBP/AUD rates have remained very flat during Friday’s trading, following a volatile couple of weeks for the currency pair. Rates are floating between 1.83-1.84 on the exchange and I believe Sterling will continue to find support above 1.80 in the short-term.
The AUD had started to make inroads following a difficult run against Sterling but mixed economic data from China has caused uncertainty within the markets. We did hear of a slowdown in Chinese economic growth, which seems to have stunted the AUD’s recent momentum. However, only a couple of weeks ago we were hearing the opposite and this gave the AUD a boost in the short-term. Due to China’s size we will often get contrasting views and data releases but overall I believe the Reserve Bank of Australia’s commitment to lowering the value of the AUD and the likelihood that we will see a UK interest rate hike sooner than we will see one in Australia, should help to keep GBP/AUD rates above 1.75 for some time.
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