GBP/AUD rates have spiked overnight, with the Pound hitting 1.7262 at the high.
The pair has remained extremely range bound of late, with little indication that the Pound will make any sustainable move up to, or through 1.75.
Similarly, it seems to be finding plenty of support above 1.70 as the markets wait for the next key driving factor to show itself. This could well be linked to any media reports regarding Brexit negotiations, with phase two talks set to get underway shortly. These will run until October, so personally I don’t expect to see any major breakthroughs anytime soon.
Considering how prolonged and arduous phase one talks were, I am not partially confident as we head into the next round of negotiations.
This could put pressure back on the pound and it may be wise to protect any short-term GBP/AUD positions ahead of these talks.
Looking at the Australian economy and early year financial reports have indicated that the Australian economy is set to continue to grow in 2018. If this prediction comes to fruition it will be Australia’s 27th year of uninterrupted growth.
This in itself is a quite staggering statistic, especially when you consider there have been at least three major global recessions during this period.
Whilst the Australian economy is of course not impenetrable, it is clear they are benefiting from high levels of skilled immigration and a booming mining industry, which helps to support their continued growth.
The issues they could face are rising house prices in both Sydney & Melbourne, which are becoming are becoming unsustainable. This is making them unaffordable for the majority of residents, which in turn could have a negative impact on the Australian economy and ultimately the AUD in the coming months.
If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.