The Reserve Bank of Australia are due to meet on Tuesday and with the GBPAUD rate on an upwards spiral any mention of a rate cut could see rates go even higher.
With Chinese data dwindling and the Australian economy having its own problems with growth a rate cut could be quite a good thing for the economy.
However, I don’t expect to see a rate cut just yet but some tactical jaw-boning could be used to weaken the Aussie Dollar vs Pound Sterling.
Australian retail sales are also due just before the RBA’s decision but I think the currency markets will be waiting for the RBA announcement and overlook this piece of data.
Australian unemployment data is due on Thursday and signs of negative data is likely to weaken the AUD vs Sterling especially if the RBA do mention any sign of a rate cut.
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