GBPAUD rates fell to their lowest level in one year as renewed uncertainty over the UK Brexit and continued demand for the Australian dollar persisted. In the current environment the AUD represents a good buy with investors as it presents a good return offering higher interest rates than its peers. Trade Balance figures were less than expected and continued positive news form China is keeping the RBA from cutting rates in the future.
In this environment the AUD is a popular currency to be holding and it appears this trend will continue further as sterling remains under pressure from political uncertainty. The next big news is tomorrow’s Retail Sales from Australia and then US Non Farm Payroll data in the afternoon. This news from the US will help investors to weigh up their attitudes to risk which will feed into weakness or strength on the Aussie.
If you are planning to sell AUD for pounds the rates are very good and may yet get much better. On the flipside if you need to buy Australian dollars the rates are falling and making some plans sooner rather than later might be the best way to navigate the uncertainty. For more information please email me Jonathan on email@example.com