The AUD continued its run against GBP during today’s trading, with the pair moving towards a 6 month low. The AUD has surprised many and its recent market support goes against the overriding trend we have seen for most of 2015. With GBP/AUD rates dropping by almost 3 cents from high to low during Tuesday’s trading, the question now is whether the AUD can find enough support to break through 2.05.
Personally I expect the Pound to find support around this level, as despite this recent improvement, the Australian economy is by no means out of the woods. With the economic climate in China remaining bleak the AUD is likely to come under further pressure over the coming months, which means I would eb very tempted to lock something in around the current levels, which sit approximately 15 cents better than they did during the lows of the summer.
The catalyst for today’s aggressive spike was the RBA’s decision not to cut their base interest rate, which was taken as a sign of strength by the markets. With Gross Domestic Product (GDP) figures released overnight expected to show an improvement from previous at 2.4%, we could see the AUD start to put pressure on the 2.05 resistance level.
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