GBP/AUD rates have spiked significantly over the past 48 hours following poor Chinese data and a speech by Reserve Bank of Australia (RBA) deputy governor Philip Lowe. The AUD lost over 1% during yesterday’s trading as Lowe stated he felt the AUD was gaining too much market strength and was concerned about how this would affect their export industry. He also mentioned th RBA were open to further interest rate cuts and that a weaker AUD was likely to assist a recovering Australian economy.
I now feel we are likely to see GBP/AUD levels move back towards 1.90 before Christmas, unless the Bank of England (BoE) step in to try and control Sterling’s value.
UK Gross Domestic Product (GDP) figures were released this morning and came out as expected, so attention will now switch to the Australian New Homes Sale data coming out overnight, which if positive could help curb any further AUD loses over the coming days.
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