Aussie weakens as prospect of a rate hike diminishes!

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

Overnight the Reserve Bank of Australia kept the interest rate on hold as widely expected but signaled in their commentary that they were unlikely to raise interest rates anytime soon which has caused the Aussie to weaken. I did point out to readers the prospect of GBPAUD rising above 1.70 yesterday and now the key question is can the GBPAUD pair hold firm at this level?

This morning is some key economic data for the UK with the latest Construction figures, ultimately this represents only about 10% of the UK economy but is indicative of the direction the economy and therefore potentially the pound will take. Tomorrow we have more important data in the form of the latest Services news for the UK. Both areas had been on the wane in recent months prompting concerns about the effects of Brexit on the UK economy.

Will GBPAUD hold above 1.70? If you need to move a large volume (10,000 GBP to the multi millions) of pounds or Australian dollars say following an overseas property sale or business transaction making plans around this event is important. For a free, no obligation and chat about your transaction please speak to me Jonathan Watson by emailing jmw@currencies.co.uk or calling 01494 787 478 and asking to speak to Jonathan.

With the Australian dollar now losing some of its spark as investors see the currency as less likely to give them the returns they had hoped any surprises from the UK data could see GBPAUD comfortably back above 1.70 presenting an excellent short term spike to capitalise on. Careful monitoring of the price is key to getting the most from the market so for a free, no obligation and chat about your transaction please speak to me Jonathan Watson by emailing jmw@currencies.co.uk or calling 01494 787 478 and asking to speak to Jonathan.

Thank you for reading and I look forward to hearing from you!