Sterling gained on the Aussie Dollar by almost 1% today, offering Sterling sellers the first opportunity in a while to purchase Aussie Dollar’s on a day when the rate moved in their favor.
Personally I haven’t found today’s movement surprising, as trend lines never move in straight lines and yesterday the Pound hit a twelve month low vs the Aussie Dollar, and therefore it’s not unusual to see traders bargain hunting as soon as a currency pair fall through a previous support level.
Market speculators looking to make a quick buck wasn’t the only factor working against AUD today, earlier Australian Construction PMI disappointed, with the figure suggesting that the construction sector in Australia is actually contracting and this was met negatively by the market.
I still believe that GBPAUD is within a long term downtrend, and could fall further presenting Aussie sellers with further gains if they decide to hold on a short while longer. But anyone interested in the pair should pay very close attention to interest rate decisions made by both the RBA and the US Fed, as the Australian Dollar is highly sensitive to suggestions of policy changes, let alone actual decisions.
If anyone with an upcoming currency requirement involving both GBP and AUD would like to discuss the effects of interest rate decisions on the pair, I’ll be happy to share both my own opinion and the general feel within the marketplace with them, just email me (Joseph Wright) directly on [email protected] and I’ll be happy to discuss my forecast with you, and the ease at which we facilitate currency conversions here in our specialist foreign exchange brokerage.