Sterling vs Australian Dollar exchange rates have this week hit fresh 6 year highs as the uncertainty surrounding Greece continues.
Global investors have recently sold off riskier and commodity based currencies such as the AUD, NZD & ZAR over the last few weeks as the global economy awaits the impact of the Greek deadline due on Tuesday when they have to repay the IMF EUR1.6bn.
The amount is not the real problem but the issue is that the Greeks are being asked to increase spending cuts and change their pensions.
The Syriza party who came in a few months ago were billed as an anti-austerity party but they appear to be running out of time in order to get the debt repaid.
There is a Eurozone meeting taking place today with various finance ministers and this could see even more increases for Sterling vs the Aussie Dollar if the talks do not reach a positive conclusion.
Growth in Australia has slowed recently to 2.3% and investment by companies has been falling recently.
This weak data is likely to start putting pressure on the RBA to cut interest rates but with the Sydney & Melbourne property boom almost out of control any rate cuts could send property prices even higher resulting in a boom/bust effect.
All this uncertainty is likely to push GBPAUD rates higher next week.
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