Since the start of the week Sterling has fallen against the Australian Dollar by as much as 6 cents after the catastrophic first week of the year for the Australian Dollar.
The year began with massive problems for the Chinese stock market which was suspended on a number of occasions. However, things seem to have settled down, at least for the moment, which has seen the Australian Dollar gain vs Sterling.
With Australian unemployment due shortly I think this could come out better than expected as the jobs markets has been relatively strong for a long period of time and if this is the case I would expect GBPAUD exchange rates to fall.
At midday tomorrow the Bank of England meet to decide on interest rates.
With the BoE having stated that they will not increase interest rates until 2017 if we see a change from 8-1 to 9-0 in favour of keeping interest rates on hold then this could result in Sterling weakness and send the Australian Dollar in the direction of 2 or depending which way round 50p!
This week the UK data has been rather poor including Industrial and Manufacturing data which was the lowest level in 3 years.
Sterling exchange rates are also struggling across the board as oil prices continue to fall.
With the UK economy earning large revenues from the North Sea oil fields the industry is really feeling the effects of the fall in the value of the commodity.
My prediction is that we’ll see GBPAUD rates fall overnight creating some excellent opportunities to sell Australian Dollars into Sterling.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]