GBP/AUD rates have dipped again during Thursday’s trading, as the AUD continues its recovery against the Pound after a difficult few weeks. The Pound had gained significant momentum against the AUD, moving up to 1.92 just before the turn of the year. However, with the pair now floating around 1.86 the AUD has found market support and moved away from the near four year lows seen recently.
The Reserve Bank of Australia have been keen to see the AUD lose value, for fear of alienating their trade partners. Australia’s economy is heavily reliant on the export of its vast supply of raw materials and a strong AUD was having a negative effect on these trade arms. The Australian economy is also heavily linked to their largest trade partner China’s economy and the slowdown there over recent months has also handicapped the AUD somewhat.
Despite this latest move I do not anticipate a major realignment for the AUD and it is likely that the Pound will find support around 1.85.
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