The Australian Dollar has strengthened by almost 8 cents during the last fortnight after the chances of the UK leaving the European Union were increased according to some polls.
An opinion poll in the Guardian earlier this week had the Leave campaign winning with 45% of the vote compared to the Remain camp with just 42%.
The previous week had the Remain camp in the lead so it just goes to show how volatile the GBPAUD exchange rates are moving off the back of the sentiment surrounding the Brexit vote due to take place on June 23rd.
Yesterday afternoon saw the US only create 38,000 new jobs compared to the expectation of 164,000. This has almost certainly cancelled out any chance of an interest rate hike for the world’s leading economy and therefore global investors will be once again looking to plough money into the Australian Dollar in search of higher yields.
However, although just recently Australian GDP was surprisingly better than expected there are still risks to the Australian economy and this could result in further interest rate cuts by the Reserve Bank of Australia.
Indeed, with the next meeting due to take place on Tuesday any suggestions that it could be coming could soon reserve Sterling recent losses vs the Australian Dollar.
I still firmly believe that longer term we will see GBPAUD rates go in an upwards direction but in the short term and with the EU referendum due to take place in just less than 3 weeks we could be in for a very uncertain month ahead for GBPAUD exchange rates.
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]