The pound has risen against the Aussie to post-Referendum highs recently nudging the 1.80 mark which is presenting some very favourable opportunities for Australian dollar buyers who have so far been suffering since the EU vote. Here at the blog we try and keep clients up to date with the latest news and trends in the market that could influence your decisions on when to buy or sell currency.
The key news driving the GBPAUD this week has been events in the United States with the movement on the stock market and the US dollar triggering some big swings on USD/AUD, which in turn has seen some big movements on GBPAUD. As the Australian dollar lost ground to the US dollar which strengthened following uncertainty over the stock market, the Aussie was weakened against the pound. This is what saw GBPAUD hit the highs of last week.
Flip this all around the soothe of the those stock market fears this week has seen the US dollar lose value as investors have confidence to reinvest in more profitable shores elsewhere like stocks. This has seen the Aussie gain back some ground against the pound. Other factors on the GBPAUD pairing include the Australian Unemployment data released overnight, whilst this didn’t directly see movement on the Aussie it is important.
In underlining the strength of the Australian labour market it leaves the door open to further rate hikes this year but generally the market does not appear likely to want to factor in any hikes. Raising interest rates in Australia almost appears to be necessary in some respects but could prove very damaging.
What we may see is markets gently realising any hikes are unlikely and this could weaken the Aussie. Couple this with some strength fort he pound and GBPAUD could easily test that 1.80 level. If you are looking to make any transfer at 1.80 please speak to us about all of your options and the best way forward to maximise and capitalise on any position you will need to consider.
To learn more please contact myself Jonathan Watson on [email protected] and I can outline our service and a strategy to suit your situation.