Will GBP/AUD Rates Hit 1.80? (Matthew Vassallo)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

Sterling has continued to gain value against the AUD over the past few days, with the pair moving through 1.75 on the exchange towards the end of last week. This positive trend has continued over the start of the trading week, with the pair now trading around 1.77. This has provided those clients holding the Pound with further good news following weeks of negative downturns and some of the best trading levels of the past two months.

Clients will now be questioning whether we will see 1.80 sooner rather than later and much will depend on whether we see positive UK inflation data this morning and the official UK Unemployment rate tomorrow. Both of these will hold significant weight with investors and as such any clients with a GBP or AUD requirement should be keeping a close eye on these releases. If inflation figures come in as expected or above then we could see the Pound rally again, although whether this will be enough to push GBP/AUD through 1.80 is questionable. Personally I feel that this is likely to be a key resistance level, so it will take further positive momentum for the Pound to sustainably move above this threshold.

Looking ahead and with tomorrow’s unemployment rate expected to remain unchanged at 4.9%, expect additional volatility on GBP/AUD if the figure comes in outside of this remit. The markets focus will then turn to a host of employment data and the latest Reserve Bank of Australia (RBA) bulletin overnight on Wednesday and then the Bank of England (BoE) interest rate decision and subsequent minutes on Thursday. Both of these are key economic data releases and whilst I do not anticipate the BoE to cut rates again under current conditions, any indication in the subsequent minutes that a future cut is still on the cards is more than likely to cause Sterling weakness.

Despite the recent improvement I still feel that Sterling levels will be capped due to the on-going uncertainty surrounding the UK economy and as such I would be looking to protect any short to medium term GBP/AUD positions. If clients are going to gamble on further strength, put in place a stop loss order so that you have a bottom line and don’t risk losing the gains made over the past week. [contact-form to=’mtv@currencies.co.uk ‘ subject=’Will GBP/AUD Rates Hit 1.80?

If you have an upcoming GBP or AUD currency requirement I can keep you up to date with all the latest market movements ahead of your exchange. You may just wish to simply wish to compare our award winning exchange rates against your current provider and if so please feel free to contact me on 0044 1494 787 478 and ask one of my team for Matt. Alternatively you can leave your contact details via the form below, or email me directly on mtv@currencies.co.uk

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