As predicted in a number of my previous articles covering the Pound vs the Australian Dollar I did say that I thought we could see GBPAUD rates break through 1.80 this month.
During Friday’s trading session my prediction came true after the one of the RBA members Debelle suggested that Australian interest rates are likely to be kept on hold for quite some time to come.
This saw GBPAUD rates move past 1.80 creating some excellent opportunities to buy Australian Dollars with Sterling.
Indeed, the Pound had a good week against most of its counterparts in anticipation of a lot of movement during the course of next week.
On Tuesday the UK releases its latest inflation figures for year on year with the latest Consumer Price Index for February.
Inflation is currently at 2.9% which is a long way above the target of 2% so another high reading could provide support for another interest rate hike in the UK.
Indeed, interest rates were raised towards the end of 2017 following a long run of high inflation so on Tuesday this could provide further justification of another rate hike currently 75% priced in for May.
On Wednesday UK unemployment figures are due to be published which are close to the lowest since records began over 40 years ago. However, one issue is that of Average Earnings which will be announced at the same time as the jobs data. Wages are struggling to keep up with inflation so this could see a potential banana skin for the Pound.
On Thursday the Bank of England will announce their latest monetary policy and although there is almost no chance of a rate hike if there are any suggestions of this coming in the near future I expect Sterling to rise in the value against the Australian Dollar.
However, arguably the biggest impact for anyone with an Australian Dollar requirement will come on Thursday when the EU Summit takes place. At the moment the future of the UK’s relationship with the European Union is very uncertain and uncertainty often results in heightened volatility.
Therefore, if you’re concerned about what may happen it may be worth getting things organised prior to Thursday.
If you would like further information about how to save money when buying or selling Australian Dollars and would like a free quote then contact me directly and I look forward to hearing from you.
Email me directly Tom Holian [email protected]