GBP/AUD rates have recovered following a poor few days on the market for the Pound. Sterling value had been knocked as the uncertainty surrounding the outcome of the UK general election took hold, with GBP/AUD dropping by almost 3 cents during the early part of this week’s trading.
For a period it looked as if the AUD may put pressure on 1.90 and with that being a key resistance level for GBP, it may have continued had it breached that glass ceiling. However, following developments last night and in the build-up to the election the Pound started to recover and moved back above 1.95 at today’s high. With the Conservatives now having secured an overall majority, an outcome the markets seemed to be craving, we have seen confidence restored and it is likely that Sterling will continue to be well supported in the short-term.
This feeling is enhanced as data from China, Australasia’s largest trading partner, has shown that their exports have dropped. Any downturn in China’s economy is generally mirrored in Australia and therefore it is unlikely to help boost AUD exchange rates over the coming days.
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