Since the initial fall in Sterling exchange rates after the shock of the ‘Brexit’ vote, the Pound has remained relatively flat against most major currency pairs although that pattern has differed when we compare the Pound with the Aussie Dollar.
The support levels within GBP/AUD’s trading range have been under pressure and the pair are now trading at 1.75/1.76 whereas 1.80 has previously acted as a support level.
To me this demonstrates further weakness in the Pound moving forward when compared with the Aussie Dollar, and even if the current trading pattern is where GBP/AUD are trading once the dust has settled from the ‘Brexit’ vote which shocked global markets, I think the support level will consistently be tested in a similar manner to what we’ve experienced since June the 27th when the votes outcome was announced.
Political uncertainty is what’s been driving GBP exchange rates down for most of the year, especially since the ‘Brexit’. Australia is facing it’s own set of political uncertainties as we speak as over the weekend the Australian elections were held. The result so far has unexpectedly resulted in neither major party having a clear majority which could weigh on Aussie exchange rates although the currency is yet to show any worrying signs, particularly against the Pound.
We’ll see how this unfolds and how GBP/AUD is affected but as it stands I expect the ‘Brexit’ talk to continue to drive exchange rates between the pair for the meanwhile, although anyone with an upcoming currency exchange to make involving the Aussie Dollar should certainly keep an eye on the outcome of the election.
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