The Pound has taken advantage of a slight lapse for the Australian Dollar, pushing ever closer to that psychological target of 2.0!
The Australian Dollar has weakened on the back of another fall in Iron Ore and primarily Oil barrel prices, as even the BP Chief Executive as described the Oil price as falling off a cliff! As the AUD is so linked to the comoddity markets, the poor Iron Ore levels are helping other currencies to take advantage of excellent buying levels for AUD this morning. We have seen GBP AUD hit 1.94 this morning, a near 10 cent shift in 10 days!
Markets are also cautious of the ‘jawboning effect’, where markets speculate a future change in financial policy on the back of apparent market commetary. In this instance it is believed that the Reserve Bank of Australia (RBA) have let slip their potential desire to adjust interest rates next week, providing these buying levels.
If you have an exchange requirement, please feel free to get in contact. It is worth touching base to ensure that you have your position entered in to the market to take advantage of any favourable spikes. it is also worth noting that should the RBA not cut rates there is a good chance rates may correct their positions back to the 1.80s.
Direct line to the trading floor 01494 787 478 (Ask for Andrew Bromley on the Australian Dollar desk)
Alternatively email [email protected]