Sterling Australian Dollar breaks past 1.85- Will the rally continue? (Tom Holian)

Over the course of the last week the Australian dollar has done well against Sterling, the AUDGBP rate currently sits at 0.5651.

Sterling has had a much better week against all major currencies including the Australian Dollar compared to previous weeks as the sentiment surrounding the EU referendum looks to be in favour of the UK staying in the European Union.

The UK government, City of London, Bank of England governor and President Obama have all spoken in favour of staying in and with the official campaign now in full force we could see a huge amount of volatility for GBPAUD exchange rates in the two months ahead.

There is little data coming out today for Australia but a huge amount of economic releases next week to move exchange rates.

Down under the Australian Budget is announced on Tuesday 3rd May and with Prime Minister Malcolm Turnbull looking likely to call an election in early July I think we could be in for the most volatile period all year.

If you look at what happened to Sterling in the run up to both the Scottish referendum and the general election last year the events caused huge movements for Sterling and both saw losses for the Pound in the run up to the events owing to the uncertainty.

However, as soon as the results were announced this caused Sterling to make gains.

Therefore, if you’re considering selling Australian Dollars into Sterling it may be worth looking at organising this in the near future.

If you don’t have full availability of funds you may to consider buying a forward contract which allows you to secure your exchange rate in advance for a small deposit.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk