Sterling vs Australian Dollar exchange rates have remained above 2 apart from a small blip overnight.
The Reserve Bank of Australia governor Glenn Stevens will take centre stage when he addresses the markets about the recent policy decision made by the central bank.
The RBA cut interest rates earlier this month from 2% to 1.75% in an attempt to kick start the Australian economy which has seen signs of a slowdown recently.
The Chinese economy which is such an important part of the Australian economy has continued its recent slowdown and with commodity prices still relatively low this is causing problems for the economy down-under.
I think Glenn Stevens’ tone will be relatively dovish and he could even hint that the RBA may look to cut interest rates again in the future and this could see GBPAUD rates go in an upwards direction overnight.
The sticking point behind whether or not Sterling may strengthen further will come on Thursday when UK GDP figures are set for the release.
This is the second revision for the first quarter with the estimate at 0.4%. Anything different is likely to cause some volatility for Sterling vs the Australian Dollar.
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