GBPAUD Rates fall below 1.80 (Tom Holian)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

Sterling has had a very strong period against the Australian Dollar tipping towards 1.86 in recent weeks but last week saw the biggest fall for GBPAUD rates in quite some time.

The trigger point came in the form of the Quarterly Inflation Report which saw Sterling fall by over 1% against the Australian Dollar and this has continued all last week.

Indeed, at the time of writing GBPAUD rates have tipped below 1.79.

The Chinese economy is often seen as the catalyst for movement of the Australian Dollar and typically when the Chinese data is negative this weakens the Australian Dollar.

However, the news from the end of last week showed that China’s economy is showing more signs of weakness. This in theory should have weakened the AUD against the Pound but owing to the negative comments from Mark Carney this data appears to have been overlooked.

Tuesday morning sees the release of UK inflation figures and as they have dominated headlines this month this could cause a large amount of volatility for the GBPAUD currency pair.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk