Are GBP/AUD Rates Heading Back Above 2? (Matthew Vassallo)

AUDGBP Looks for Gains After Friday Bounce

It’s been a volatile couple of weeks for GBP/AUD rates of late, with both the Pound and the AUD threatening to build momentum at different junctures. Initially it looked as if the AUD may make a move back towards 1.90 and with the uncertainty created in the build-up to the UK election, this was looking like a distinct possibility.

However, as often happens the currency markets can move aggressively and unpredictably and the Pound immediately gained market support following last week’s election result and the on-going concern over the slowdown in China’s economy. With China and Australia so inextricably linked due to their trade agreement; any slowdown in China’s economy invariably has a negative effect on Australia’s and ultimately the AUD.

Personally I feel that GBP/AUD rates are likely to head back up towards 2 over the coming weeks, unless there is a change in stance from either central bank and/or a change in market perception surrounding China, which could lend itself to some AUD support.

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 at [email protected]