We are now just 2 weeks away from one of the most important decisions in the UK’s history when the EU referendum takes place on 23rd June.
GBPAUD rates were trading above 2 only recently but have started to fall owing to the recent shift in sentiment surrounding the various opinion polls.
Most recently the Telegraph over the weekend published their own poll which included 19,000 subscribers. This showed that 69% of those who voted on the poll backed a Brexit.
However, it is important to note the each newspaper may have its own type of readership who support either a Leave or a Remain vote.
Earlier this week the Reserve Bank of Australia voted to keep interest rates on hold and although I do expect them to cut interest rates at some point during 2016 this caused the Australian Dollar to strengthen.
Last Friday the US released their most recent set of employment data in the form of Non-Farm Payrolls data which showed only 38,000 new jobs were created compared to the expectation of 164,000.
This was the lowest number of new jobs in the US since 2007 and therefore means the US Federal Reserve are extremely unlikely to be increasing interest rates when they next meet on 15th June.
This has encouraged global investors to seek higher yields including buying Australian Dollars and one of the big reasons for the recent strength for the Australian Dollar vs Sterling.
This has created some excellent opportunities to sell Australian Dollars into Sterling but I expect Sterling to recover against the Australian Dollar once the Brexit vote has taken place especially if the UK votes to remain in the European Union.
Therefore, if you are looking at selling Australian Dollars to buy Sterling it may be worth organising this prior to the 23rd June.
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]