Today’s EU Referendum is turning out to be a volatile period for AUDGBP exchange rates. In just the last 24 hour’s rates have moved over 1 cent and in the last 4 hours alone, rates have fallen half a cent.
It’s becoming clearer that the market is confident in a remain vote, the latest polls suggest the status quo and on top of this, bookmakers have put the odds of a Brexit at 30%.
So what can we learn from this? The bookmakers got it right on the Scottish Referendum, similarly in the case of last year’s General election. Traders are piling into the Pound, if there was any uncertainty of a Brexit from their perspective, they wouldn’t be gambling with potentially billions of Pounds.
If you are an Aussie Dollar Seller, current levels are still attractive as in the event of a Brexit, levels below 0.50 perhaps mid 0.40’s could be tested which could put the pair at a 6-9-month low.
There is very little economic data due to be released for the Dollar in the next 7 days and with the RBA potentially signalling further Interest rate cuts if inflation does not improve, lower exchange rate levels could be on the cards for an extended period.
As it stands in my view, all signs point towards an Aussie Dollar sell, get in touch with me at [email protected] if you have any requirements and I will be more than happy to assist you.