The Pound has risen close to EU referendum highs this week against the Australian Dollar after news that a transitional deal has been confirmed.
This has given Sterling a boost against a number of major currencies and with the EU summit due to take place if the talks go well this could see GBPAUD exchange rates continue to rise.
The Australian Dollar has also struggled in recent weeks as the chances are that we will see a number of interest rate hikes in the US during the course of this year and tonight the US Federal Reserve are due to increase interest rates, which will take them higher that in Australia.
In recent years global investors have moved money into Australia owing to the higher yield but as the US economy is improving and a series of rate hike plans are planned this has caused the Australian Dollar to weaken.
In a number of my previous articles I wrote that I thought we would see Sterling break past 1.80 during the course of this month and this has all been proved right.
The minutes from the recent Reserve Bank of Australia meeting suggested that the chances of an interest rate hike down under are very low and this in my mind has caused investors to sell the Australian Dollar in favour of the US Dollar, which has pushed GBPAUD rates in an upwards direction.
Australian unemployment figures are due overnight as well as Australian employment change data and this could cause a lot of movement overnight so make sure you keep a close eye out on what happens with this data release.
Arguably the most important event for GBPAUD rates will be the EU summit which starts tomorrow so expect a lot of volatility in the days ahead.
If you would like further information about what is happening with the Australian Dollar as well as a free quote then contact me directly and I look forward to hearing from you. The more information you provide me about your particular transfer means I can provide you with a more detailed answer.
To Holian [email protected]