Sterling’s bullish run against the Aussie Dollar has come to an end today with the pair trading down over half a percent.
Those watching the GBPAUD exchange rate will be well aware of Sterling’s recent rebound throughout this month, although whether or not the positive trend continues remains to be seen, and personally I think it may begin the fizzle out from this point onward.
The Pound had rallied heavily after the Reserve Bank of Australia (RBA) cut Interest Rates down to 1.75%, and that trend has continued since the decision after members of the RBA indicated that there could be further cuts. This had prompted many to call in and take advantage of Sterling’s unexpected gains as many were not expecting to see any Sterling strength in the lead up to the EU Referendum, which is understandable when we consider the negative effects political uncertainty can have on the underlying currency.
The reason for the rebound in Aussie Dollar strength today ties in with the recent interest rate cut, as those hoping for further AUD strength welcomed the news that some members of the RBA were reluctant to cut the rate, and this drove markets higher.
The relationship between Sterling and the Aussie Dollar is interesting at the moment as both are driven by weakness and for different reasons. Interest Rate cuts and hints at future cuts from the RBA and weakening AUD whilst sentiment towards the Pound is being mostly driven by the Pollsters. The bookies currently have a ‘remain’ vote in the lead and this is being reflected in Sterling exchange rates. Feel free to get in contact if you would like to discuss the relationship between the two.
If you have an upcoming or imminent conversion to make involving AUD, GBP or both it’s worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible. You can also call in directly on 0044 1494 787 478 and ask for Joseph.