Big week ahead for GBPAUD rates owing to Australian Budget and RBA Minutes (Tom Holian)

AUD GBP Higher Despite Higher UK GDP Number

Sterling vs Australian Dollar exchange rates have had a very big movement in Sterling’s favour during April and we could see further gains to come during the course of this week. Indeed, we have seen over 4% gains in Sterling’s favour last month.

The Australian Budget tomorrow could see some big movements for the currency pair as it comes as Malcolm Turnbull’s make or break and there are expectations that we could see an early election called which could come an early as July.

The Budget is likely to include some vote winning policies and could help Turnbull gain another term as and when the Australians got to the polls.

With the Reserve Bank of Australia minutes due out tomorrow I think we could see some hints that an interest rate cut may be coming in the next few months.

With the global slowdown not going away to me it is simply a case of when rather than if the RBA will look at cutting interest rates and any signs of this could see further AUD weakness.

Indeed, if my prediction comes true we could see further gains during the course of the week for GBPAUD exchange rates.

On Thursday there are further economic data releases for Australia in the form of Trade Balance data, Imports & Exports and Retail Sales.

Again, I would not be surprised to see this bout of data come out negatively giving rise to Sterling strength vs the Aussie Dollar.

With the EU referendum just less than 2 months away this could cause an uncertain time ahead for Sterling but at the moment the polls are suggesting that the UK will vote to stay in the European Union.

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]