Sterling exchange rates have been on an upwards trend against all major currencies recently and the spike vs the Australian Dollar has arguably been the most noticeable.
Sterling has rallied following the recent opinion polls which have put the Remain camp in the lead and the AUD has weakened against a basket of major currencies and this has magnified the effect between Sterling and the Australian Dollar.
The weakness of the Australian Dollar has been caused by the recent interest rate cut down under from 2% to 1.75% and this has caused investors to sell off the AUD in favour of better returns elsewhere.
With another potential interest rate cut this year the possibility of this happening has now been priced in.
RBA govenor Glenn Stevens spoke about the recent policy change on Tuesday and his comments about further stimulus has caused GBPAUD exchange rates to rise.
Next week there are a number of data releases that could cause volatility for Sterling vs the Australian Dollar including New Home Sales on Monday and Thursday with the release of Trade Balance, Retail Sales, Import and Export figures.
The main driving force behind Sterling exchange rates is the sentiment surrounding the EU referendum and if we see further polls announced in the next few days in favour of the Remain campaign this could see sterling move higher.
If you have a currency transfer to make and want to save money on exchange rates then contact me directly for a free quote. Tom Holian [email protected]