GBPAUD exchange rates have remained range bound throughout this week, and they’ve been trading within this range (between 1.83 to 1.86) since April the 13th.
There would appear to be some support for Sterling around the 1.83/1.84 mark, and I think that those waiting for the right time to sell their Aussie Dollars should pay close attention to that particular level, as it may present the best opportunity to make that conversion.
I’m of this opinion for a number of reasons, firstly as we’ve previously covered here on the blog, Reserve Bank of Australia (RBA) Governor Glenn Stevens has previously highlighted the downsides to an overvalued currency to a recovering economy, and I think that there is a chance the RBA could take action in order to weaken AUD some time in future. Additionally the fears surrounding Britain’s political future moving forward are beginning to subside, at least that’s what the currency markets are suggesting as GBP has recovered a lot of lost ground on many of the major currency pairs this week.
When we look at the chart for GBPAUD this year the weakening of the Pound looks like it’s begun to slow down since the middle of March, this would suggest Sterling is finding some strength around these current levels, and personally I becoming a bit more bullish with regards to GBP moving forward and I wouldn’t be surprised to see GBPAUD levels closer to 1.90 than 1.80 around the beginning of next month.
Sterling exchange rates have been dragged downwards this year mostly due to the upcoming EU Referendum on the 23rd of June, and as both the UK Government puts in overtime to sway the public into voting to remain in the EU, and the most recent polls are suggesting that the ‘remain’ camp is leading, Sterling exchange rates are beginning to show strength at a time when many haven’t expected it.
There’s no financial data to be released tomorrow that applies specifically to GBP or AUD, so I expect sentiment to continue to drive the GBPAUD exchange rate for the rest of the week. If you have an upcoming currency requirement involving GBP, AUD or both, it’s worth your time either calling me directly on 01494 725353 and asking for Joseph Wright, or alternatively you can email me directly on [email protected] for my forecast, and taking advantage of award winning exchange rates from a regulated UK based currency brokerage.