The pound is edging higher against the Australian dollar having seen a considerable drop over the last few weeks in the run up to the British referendum on EU membership. Levels for GBP AUD are still trading close to a 6 week low but the pound does appear to have found support against most currencies including the Australian dollar.
UK unemployment data yesterday fell to just 5%, the lowest since 2005 which provided a boost for the pound but was largely overshadowed by referendum politics. Bob Geldof was seen on the Thames hurling abuse at fishermen wished to voice their views of the EU from their experience. At the same time threats of harsh tax rises from Chancellor of the Exchequer George Osborne did not go down well with the British public either. Just one week to go in this most passionate and heated debate which will continue to dive exchange rates!
Clients who are selling Australian dollars may be looking at the best rates available in this volatile period. More volatility should be expected as we approach 23rd June and my view remains sterling exchange rates should remain low in the run up. Until the referendum is out of the way the pound will struggle to see any positive movement especially when the polls are putting Leave so far ahead in front.
Australian unemployment released overnight held steady at 5.7% with little market reaction. With no major data releases eyes look to the Reserve Bank of Australia’s minutes where clues may be offered as to when another cut may be seen. This is an important release and should give added direction for the Australian dollar. Considering how effective the last interest rate cut in Australia was with rapid dollar weakness seen then my view is that the RBA will be reluctant to cut again so soon.
If you have an upcoming GBP or AUD currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at [email protected]