The AUD has struggled to make much of an impact against Sterling of late, although it seems to have found support below 1.80 against Sterling.
GBP/AUD rates have remained range bound between 1.77- 1.7829 during Wednesday’s trading, with both positive and negative data influencing the pairs value.
The Pound gained some support yesterday following a leaked Brexit report. It indicated that the EU Parliament is set to push for Britain to have “privileged” single market access, giving the UK more flexibility and thus softening our upcoming exit. It seems as though Brussels are keen to accelerate the UK’s exit, perhaps by offering improved terms.
Whilst these reports have not been substantiated, they seem to have filtered through to currency markets and provided enough substance to act as a potential catalyst, for an increase in investor confidence.
However, the Reserve Bank of Australia (RBA) minutes released overnight, coupled with UK Unemployment rising to 4.4% seemingly put pressure back on Sterling.
The RBA were keen to point towards wage growth improvements as a reason they could look to raise interest rates this year. With their global outlook also looking fairly positive, the AUD could be one of the main benefactors.
Investors will look towards riskier, potentially higher yielding currencies such as the AUD in times in global prosperity. This could help strengthen the AUD’s position over the coming months if does indeed come to fruition.
In the short-term the UK economy also received a boost, seeing the strongest two quarters of productivity since the 2008 recession.
The markets seem to be increasingly driven off of rumours rather than facts and as such, they are proving increasingly difficult to dissect.
With Brexit developments likely to drive investor sentiment over the coming months, I would be wary about gambling too much on a market which has become unpredictable at almost every turn.
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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.
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