GBP/AUD rates have dropped back below 1.78, following a rally overnight. The Pound a high of 1.7905 before retracting to the current levels, with the AUD continuing to find plenty of support under 1.80.
Despite Sterling struggling to break through this key resistance barrier it has been well supported of late, seemingly performing better against the AUD than it has against some of the other major currencies.
GBP/AUD rates are currently trading at some of the best levels since the now infamous UK referendum result. Investor confidence has risen, in line with some seemingly positive developments in Brexit negotiations. This positive feeling, coupled with the Reserve Bank of Australia (RBA) talking talk any potential interest rate hikes in the short-term, has helped propel the Pound and support it around its current trading levels.
We must also consider the US economy and global markets, when trying to determine which direction the AUD might take next.
The US economy is still considered the key driver of the global market and as such any upturn in the US economy can lead to an increase in investors risk appetite. Thin in turn will cause investors to move their funds in to what are considered riskier assets or currencies such as the AUD. Therefore in times of global prosperity the AUD will often strengthen as investors look for potentially higher yielding currency returns. Similarly in times of global uncertainty, as we currently face, funds are moved away from the riskier assets and into safer haven currencies such as the USD.
Personally, I would avoid risk wherever possible in the current market, which remains uncertain and unpredictable at best.
If you have an upcoming 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.