GBP/AUD rates have dropped during Wednesday’s trading, following the release of Australian Gross Domestic Product (GDP) figures overnight. With the official reading of 0.6% growth coming in above expectation, the AUD received another timely boost. It had already benefitted from the Reserve Bank of Australia’s (RBA) decision not to cut interest rates earlier this week and GBP/AUD rates fell to 1.9255 at today’s low. The Pound has recovered slightly and has shown signs of strength against the other major currencies, so it may be that this is short-term opportunity for those clients holding AUD.
Whilst I now expect the AUD to find support under 2, the Australian economy still has a number of issues to deal with. The main concern of course is the economic downturn in China, which is having a negative effect on Australia’s export industry. Due to their heavy reliance on this sector of their economy this is going to cause problems over the coming months and this why I am wary about assuming this positive trend is going to continue. I certainly feel the Pound will find support above 1.90 and if the improvement we’ve seen against other currencies today is reflected on GBP/AUD rates, then a move back above 1.95 is likely over the coming days.
We have Australian Import/Export data overnight, which is always a key release in Australia, so expect increased volatility on the exchange during Thursday morning trading.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me 0044 1494 725 353 and ask one of the team for Matt. Alternatively, I can be emailed directly on [email protected]