The Pound to Australian Dollar exchange rate has managed to hold onto the gains it made recently, which could be a key indicator for future movement between the pair.
The key level of 1.80, which had acted as a resistance for almost two-years was broken easily by the Pound as news broke that the UK and EU negotiators have come to an agreement regarding the transitional Brexit agreement.
This news boosted sentiment surrounding the Pound as it saw a boost across the board of major currency pairs, but the gains against AUD have been exaggerated as AUD has been coming under some pressure of its own.
AUD has lost its status as one of the highest yielding major currencies after the US Fed Reserve bank has begun hiking rates in the US, with plans of further hikes this year on the cards. This in-turn has made the Aussie Dollar less attractive, which has helped the Pound hit these high levels.
Despite some poor data out over the last week in the UK’s construction, manufacturing and services sectors the Pound has manged to hold on to its gains which I believe is a positive sign for the Pound moving forward.
There is quite a quiet week of data scheduled for this week out of the UK, but I do think tomorrow could be the busiest day as UK GDP and Industrial and Manufacturing production figures are set for release all before lunchtime.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.