GBP/AUD rates dropped over the weekend, with the pair falling to 1.9535 at today’s low. The general trend over the past couple of months has been Sterling strength but this form has been quickly reversed following the latest Brexit polls, which have indicated that the Leave camp have taken a narrow lead ahead of the EU referendum vote on June 23rd.
The markets are extremely volatile at present and with further polls to be released over the coming days, I would not be prepared to gamble on these. My concern is that any further indications of a Brexit will likely weaken Sterling’s position further. We also had a boost for the Australian economy last week, following the release of their latest Gross Domestic Product (GDP) figures.
Tonight the RBA are having their latest interest rate meeting and whilst I do not anticipate a change in rates, it will be the subsequent statements that investors will be keeping a close eye on. With a concern over current levels of inflation and the on-going economic problems facing China (Australia’s largest taring partners), I do not expect it all to be one way traffic on GBP/AUD. If you remove the Brexit scenario the Pound should be trading at higher levels and again the current instability would push me towards securing any short-term GBP/AUD positons prior to the referendum vote on June 23rd.
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