The Australian Dollar is still holding close to its highest point in 2015. The recovery since the UK election for GPD-AUD rates has been substantial, but it seems the period for rapidly climbing rates is over.
Next week GBP-AUD rates will be largely governed by UK data, as the Australian sector have very few releases of their own. The main pieces of data for the UK will be consumer and business confidence data. After a record increase for retail sales figures in the UK this week, higher confidence must surely follow, and we may see rates stray up past 1.99.
However, David Cameron is currently negotiating the UK’s relationship with the EU, and markets will be watching this closely. Any friction between the leaders will likely dampen business sentiment and hurt GBP value on the markets. So caution is advised for those expecting an easy ride towards higher rates next week.
Personally, I would be looking to take advantage of the rates as they are now, rather than waiting for the market to stretch even further in my favour. The further it stretches the larger the snap-back should be once one occurs. I recommend getting in contact with me over the weekend so I can update you regularly over next week when buying opportunities present themselves. [email protected]