During the course of the week the Pound has hit its best level to buy Australian Dollars since early March or a 2 month high.
The recent movement for the currency pair has been very swift moving by over 8 cents in just a week.
With the UK now looking less likely to leave the European Union when the EU referendum takes place on 23rd June and comments from President Obama confirming that he clearly wants the UK to stay then this has given the Pound a lift against all major currencies.
Next week the Australian Budget is released and this is almost seen as a last chance saloon for Turnbull. The news comes on Monday and millions of workers are likely to be offered small tax cuts that will start on 1st July. This will be used in attempt to support the economy as fears are apparent down under of a slowdown.
However, this will also be used as an attempt by Turnbull to curry favour as the likelihood is that the Australians will then go to the polls over the next few weeks.
With this recent uncertainty for Australia this is one of the key reasons why the Australian Dollar has weakened with GBPAUD rates having hit 1.92 during the week.
On Tuesday the Reserve Bank of Australia will announce their latest interest rate decision and although I don’t expect any change in policy the announcement is likely to cause a great deal of volatility as it comes so close to the Budget release.
My overall prediction for next week for Sterling vs the Australian Dollar is further Sterling strength against the AUD providing some even better opportunities to buy Australian Dollars.
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 [email protected]