GBP AUD exchange rates remain on the back foot after that UK snap general election created political uncertainty in Britain and which continues to weigh on the price of sterling. The Queens speech on Wednesday is the big event of the week in Britain and high volatility is to be expected. Any political attacks or attempts to vote down the Queens speech by Labour leader Jeremy Corbyn could see the pound weaken further against the Australian dollar.
As things stand no agreement has been made between the Democratic Unionist Party (DUP) and the conservative government so there could be fireworks tomorrow at the Queens speech. However if all goes smoothly at the opening of new parliament then GBP AUD could see a rally back toward 1.70. This may not come tomorrow but once there is an understanding of how the conservative government will be running with the support of the DUP then it should lend support to the pound.
Selling Australian Dollars
Clients looking to sell Australian dollars would be wise to consider taking advantage of the recent dip in the price of sterling as some economic indicators down under are starting to look wobbly. The Australian housing market in particular is being closely watched and concerns have been raised. The combination of booming house prices and rising household debt has even caused Moody’s to cut its ratings on some of Australia’s banks on these concerns.
The Reserve Bank of Australia’s minutes released this morning document this view on the housing market and there could be more developments in the coming weeks and months. Clients looking to buy Australian dollars could see some better opportunities if there is a turn in the sector.
If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]