Sterling has continued to make gains against the Australian Dollar as recent UK economic data has generally been better than expected.
UK Retail sales, manufacturing and consumer confidence have all shown improvements and it provides evidence that since the Brexit vote the British economy has shown its resilience.
Previously some predictions were that the UK may even enter recession in the next few months but with UK GDP measuring at 0.6% this looks extremely unlikely.
Indeed, as the fifth largest economy the UK and Sterling is showing good signs of recovery.
The big event to look out for next week comes on Tuesday when the Reserve Bank of Australia are due to meet to discuss their latest decision on monetary policy.
It is unlikely that we’ll se any change in interest rates but any suggestions of further interest rate cuts coming in the future could cause some weakness for the Australian Dollar vs the Pound. Potentially good news if you need to buy Australian Dollars.
Also next week on Wednesday comes the release of Australian GDP figures and this is likely to cause a huge amount of volatility for GBPAUD exchange rates.
Therefore, if you want to avoid the uncertainty of what may happen and need to buy or sell Australian Dollars in the next few weeks or months then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date
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]
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