Sterling’s value has continued to climb this week against most major currencies including the AUD. Many traders are of the view that the magical 2.0 will be breached again and I personally agree but it could be weeks before we see this again. The next key data release comes out next week when we have the Reserve Bank of Australia Interest rate decision. This is expected overnight, Monday – Tuesday GMT time. Glenn Stevens the head of the bank squashed forecasts of another interest rate cut earlier this month however he has surprised us before and will probably again. Anyone with AUD exposure will be needing to make a decision on the level of exposure they want to hold over this event. If they cut rates GBPAUD rates will climb once more, if they don’t however it is likely that we will see rates fall once more.
To talk this through with live up to date data please get in contact with us here as per usual – my name is Steve Eakins and I can be contacted on email via [email protected]