I would expect pound to Australian dollar rates to come under some real pressure in the coming weeks as we have the triggering of Article 50 in the UK which will lead to the beginning of the process of withdrawal for the UK from the EU. Most commentators are eagerly following this story for developments in this story and the effect on the pound and Australian dollar rate.
Overnight the Reserve Bank of Australia Monetary Policy Statement has been released where they are targeting a continuation of current interest rate policy, basically holding steady with a slight chance of rising in the future. Most commentators expect that would be the surprise, if you need to buy or sell Australian dollars for pounds in the future being aware of these developments is very important.
Next week are a number of key releases on the economic calendar with both Australian and UK Unemployment data, Retail Sales figures for the UK and also UK Inflation data. Reports on just what to expect are mixed but by and large I would expect the pound to remain on the weaker side as investors fears over the Brexit continue and there is mounting speculation Australia will raise their interest rate before they cut it.
If you have a transfer to consider in the future making some plans in advance is always a smart move. With currency fluctuations changing continuously according to the global sentiments of risk we are now moving to a situation where politics in the UK is more important than economic data. Nevertheless the expectation is that next week’s data could impact the short term movements on the currency, if you have a transfer to make please feel free to contact me Jonathan Watson on [email protected] to learn the latest news and information that will impact your exchange rate.