The pound is creeping higher against the Australian dollar inching that much closer to $2 once again. The mood has suddenly changed after developments in the US with noises being made that the US Fed may still resume its course of interest rate hikes this year. Changes in policy in the US also have a direct bearing on the Australian dollar hence the market reaction. The key economic release to trigger this downturn in the Australian dollar was the inflation numbers from the US which came in considerably stronger than expected. We are hitting resistance at these higher levels but there is a still a fair chance it will reach $2 in the short term.
Selling Australian Dollars:
Whilst the outlook for the US seems to have practically improved overnight this is more likely to be a short term adjustment in my view. With the ongoing problems in China and global growth concerns I struggle to see how things have changed that much, on just one more upbeat data release. For anyone selling Australian dollars this should hopefully be about as low as the Aussie will fall. Furthermore the EU referendum in the UK still presents many headwinds for the pound and there are likely to be better selling opportunities in the coming weeks. The minutes last night from the Reserve Bank of Australia (RBA) were also considerably more doveish than expected which may also suggest the dollar could see a bounce. Any further interest rate cuts may not now be seen until August. A lack of action from the RBA combined with the UK referendum on EU membership could provide a win opportunity for selling Australian dollars prior to 23rd June.
If you have an upcoming GBP or AUD currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at [email protected]