I’m expecting a much busier week then usual for GBP/AUD exchange rates this week, as important monetary decisions are set for release in both the UK and Australia.
At the time of writing the inter-bank level is 1.7416 which is around the same level that the pair have been trading for a couple of weeks now. I think this week could be the first time in almost a month that we see the pair break out of their current trading range of between 1.70 to 1.80, a range it’s been trading within pretty much since the ‘Brexit’.
The sooner of the two potential Interest Rate decisions could come out of Australia in the early hours of tomorrow morning (UK time). It’s widely expected that the Reserve Bank of Australia will cut Interest Rates down to 1.5% as the RBA has previously expressed concerns over low inflation and the lack of growth within the Australian economy.
The last time that Australia cut their Interest Rate Sterling gained roughly 10 cents vs AUD, although I’m not expecting such a significant move this time around as markets are generally expecting the cut.
The Monetary Policy Committee of the Bank of England are set to make their decision on Thursday, and it’s widely expected that the rate will be cut down to 0.25% from its current level of 0.5%.
Outside of this weeks potential volatility for GBP/AUD exchange rates I’m expecting the Pound to gradually decline as economic data released post ‘Brexit’ offers a grim picture of the UK’s economy moving forward.
If you are planning a currency exchange involving GBP and AUD it may well be worth your time getting in contact with me (Joe) on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.