Sterling has struggled to gain any momentum throughout the week, with the GBP/AUD exchange rate now trading below 1.70 and just a few cents from it’s 52 week low point.
The Pound to Aussie Dollar exchange rate so far today is clearly range-bound with the high hitting 1.6998 and the low hitting 1.6902, a clear example of where the current support level (1.69) and resistance level (1.70) sit.
I think the Pounds struggle to get above 1.70 is key and that those with a currency requirement involving the Pound should follow this trend. If the Pound manages to break past that mark it could once again find itself in the late 1.70’s like it was just a month ago, otherwise we could now see the Pound continue to tail off and perhaps break below the 52 week low of 1.6712.
In terms of news releases this week I think those that are hoping for the Pound to gain value should be aware of the potential for future monetary easing within the UK. The Bank of England’s Minouche Shafik has suggested that more policy easing is needed in order to ensure the economic slowdown doesn’t turn into something more pernicious, and immediately after these comments the Pound fell which offers us an insight into how the markets will react if there is further easing and Sterling sellers should note this.
If you are planning to make a currency exchange between GBP and AUD, it’s worth your time getting in contact with me 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.