Sterling vs the Australian Dollar has remained in a relatively tight range recently although GBPAUD rates have been trying to hit 1.80 on a number of occasions already this month.
In my own opinion I think it is only a matter of time before the Pound breaks past 1.80 as the Australian Dollar is coming under a lot of pressure recently.
The latest report from China in terms of GDP data has shown a slowdown to 6.7%, which although this is clearly much higher than that of any of the western economies this has caused concern for the world’s second largest economy and this has caused the Australian Dollar to weaken against a number of different currencies including the Pound.
The US has been threatening China with a Trade War and has put in potential plans to raise tariffs of US$200bn to come into play in the next few weeks.
Whether or not this is simply the US flexing its financial power or it will take place is anyone’s guess at the moment but the uncertainty it has caused has made global investors move money away from riskier currencies and towards the US Dollar and this has in turn harmed the value of the Australian Dollar.
Earlier this week the Reserve Bank of Australia released the latest set of minutes and they confirmed that interest rates are likely to be kept on hold for the time being.
With the US planning further interest rate hikes as well as the UK considering doing the same as early as 2nd August this is another reason why we could see the Pound moving in an upwards direction against the Australian Dollar in the next fortnight.
If you have a currency transfer involving Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing form you.
Tom Holian [email protected]