Sterling Australian Dollar exchange rates finally broke past 2 this week with levels on Interbank trading above 2.03 at one point on Thursday.
However, Sterling’s gains against the Australian Dollar have been slightly eroded as traders took short term profits.
Sterling has been on this rally for a good few weeks now and we could see Sterling just edge higher next week as global investors appear concerned about holding Australian Dollars.
The Reserve Bank of Australia cut interest rates earlier this month and there is a chance that they may look to do it again during the next quarter and this potential interest rate cut is being priced in.
With only a few weeks before Australia goes to the polls to vote for their next leader this political uncertainty is also causing Australian Dollar weakness which is good news if you need to send money to Australia.
However, we are now only just 5 weeks away from the UK vote involving whether or not we will stay or leave the European Union.
At the moment it appears unlikely that we’ll leave and with a recent poll showing that the Remain camp are in the lead this is why Sterling managed to break past 2 vs the Australian Dollar.
On Tuesday morning we could see GBPAUD rates go higher when RBA governor Glenn Stevens takes centre stage and delivers a speech about the current reasoning behind economic policy in Australia.
With the RBA having cut rates I think any signs that Stevens’ gives concerning when the next one may come this could send Sterling vs the Australian Dollar even higher than the highest point reached this week.
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@example.com