The recent volatility on GBP/AUD rates looks set to continue in the short-term, with many investors holding out for rates to spike back above 2. It did seem as if this was an inevitability earlier this week with rates spiking over 1.99 but as is the case with any volatile currency pair, conditions can change quickly and aggressively.
The AUD found market support under 2 and started to realign itself against Sterling. This move was exaggerated following the release of this morning’s UK Retail Sales figures, which came out worse than expected. Subsequently the AUD has moved by over two cents high to low, with GBP/AUD now floating around 1.96. Despite this dip we are still seeing some of the best levels of the past 6 years for any client looking to purchase AUD. with the Reserve Bank of Australia (RBA) as committed as ever to lowering the value of the AUD and a slowdown in China’s economy (China are Australia’s largest trade partners), it may be that this spike in value for the AUD is short-lived.
Looking ahead to next week and there is little data of note for Australia, so it is likely Thursday’s UK Gross Domestic Product (GDP) figures which are likely to dominate headlines and cause additional volatility on GBP/AUD exchange rates.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on email@example.com