GBP/AUD rates have been on a bumpy ride this week, with both currencies threatening to make a decisive move. Neither could gain enough market support to make a sustained move, with the pair still floating around 1.94 on the exchange.
The Pound has lost some ground however this morning, following poor UK Manufacturing data for April. Figures showed a sharp downturn, with a reading of 51.9 below expectations. This has caused the Pound to weaken and the AUD has now moved back under 1.94. GBP/AUD is generally a volatile currency pair, as witnessed during yesterday’s trading, when rates moved by almost 3 cents from high to low.
Whether this spike for the AUD carries on into next week is debatable, as on Tuesday we have the latest Reserve Bank of Australia (RBA) interest rate decision and subsequent statement. With many expecting the RBA to cut interest rates again we could find this positive move for the AUD is short-lived. I also feel that Sterling is suffering due to the uncertainty surrounding the general election and this is handicapping any positive moves for the Pound. Once this uncertainty has been removed we could find GBP/AUD rates moving back towards 2.
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