Pound makes gains vs the Australian Dollar on interest rate hike rumours (Tom Holian)

AUD GBP Higher after Inflation Data, Sunak Budget Ahead

The Pound has made some solid gains during the last fortnight vs the Australian Dollar creating some better opportunities to buy Australian Dollars with Pounds.

The Pound has gained owing to the suggestion that the Bank of England are making plans for a potential interest rate hike in November. It is not just against the Australian Dollar but also against a whole host of other major currencies in Sterling’s favour.

We have broken through 1.70 on the Interbank level on a number of occasions and it appears as though there is a level of support just underneath this trading level.

The next potential catalyst for GBPAUD exchange rate movement is likely to come on Tuesday when the Reserve Bank of Australia meets to announce their latest monetary policy.

I don’t think we’ll see any movement in interest rates next week in Australia but with the US likely to raise rates before the end of the year as well as the UK potentially doing something in a few weeks there is a chance that we’ll see an interest rate hike in Australia next year.

In the meantime I expect to see the Pound continue to challenge the current 1.71 range and possibly break through as we go into next month.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will endeavour to get back to you as soon as I can.