Will GBPAUD exchange rates hit 2 during May? (Tom Holian)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

Sterling vs Australian Dollar exchange rates have continued to rise during the week as predicted in my previous articles over the last few weeks.

The Australian Dollar is finally weakening after an unexpected period of recent strength vs Sterling.

The Reserve Bank of Australia chose to cut interest rates this week from 2% to 1.75% and they have subsequently also claimed that there is further room for another interest rate cut in an attempt to boost the economy and also falling inflation which is a worry globally at the moment.

RBA governor Glenn Stevens is also due to stand down in late September to be replaced by current deputy governor Philip Lowe for a 7 year term.

With the economic uncertainty we have also seen the announcement by Malcolm Turnbull that Federal elections have now also been called as predicted following this week’s budget.

If we look at what happened when the UK went to the polls last year to vote in the general election we saw Sterling fall by as much as 4% in the run up to the announcement so I think we could see further falls for the Australian Dollar owing to the political uncertainty over the next few weeks.

Indeed, I fully expect the Australian Dollar to weaken as with both economic and political uncertainty this is likely to cause the Australian Dollar to weaken and possibly move past 2 vs Sterling in the near future.

This could be good new for anyone with Sterling needing to buy Australian Dollars.

On Sunday the Chinese release both Import and Export data as well as Trade Balance figures for April and any signs of further slowdown could see GBPAUD rates move in an upwards direction during early next 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 teh@currencies.co.uk