What impact will an Australian election have on GBPAUD exchange rates? (Dayle Littlejohn)

Today Australian Prime Minister Malcolm Turnbull has announced Australia could have a federal election as early as July 2nd if his labour reforms are not approved.

The Pound has lost ground against all of the major currencies today due to the resignation of Ian Duncan Smith, however GBPAUD exchange rates have slightly improved showing  the announcement by the Prime Minister has weakened the Australian Dollar.

GBPAUD has dropped over 10 cents since David Cameron announced the UK would hold a referendum in regards to remaining a part of the European Union. For Australian Dollar sellers I worry if Australia announce an actual date for the election, exchange rates will fall.

Tomorrow morning Australia are set to release their latest House Price Index numbers. The revised Quarter 4 figures from last year are set to show a slight decline therefore I expect the dollar to weaken and GBPAUD exchange rates to increase back into the 1.90s.

If you are buying or selling Australian Dollars I would recommend getting in touch to put a strategy in place, which will maximise your returns. In order to protect you against market fluctuations we have different contract options available that will meet your needs and requirements.

In addition if you have a currency transfer that is immanent and you want to save money on exchange rates compared to using your own bank or the brokerage you already use then contact me directly for a free quote. Dayle Littlejohn drl@currencies.co.uk. Alternatively if you would prefer to call me, our trading lines open at 8.30am UK time, +0044(0)1494 787 478 and ask for Dayle Littlejohn.