Despite some very positive gains for the Pound against a number of major currencies Sterling failed to make any real advances vs the Australian Dollar.
Weaker than expected Australian Retail Sales would have typically weakened the Australian Dollar vs the Pound but this was not the case.
The Australian Dollar could even continue its recent rally against the Pound as it appears as though US President Donald Trump is gearing up for talks with the Chinese President about stopping the current Trade Wars which has been taken as good news for commodity based currencies including the Australian Dollar.
As we head in to next week the Reserve Bank of Australia will be meeting to announce their latest interest rate decision and I fully expect interest rates to be kept on hold but it will be the comments made as to whether we’ll see any suggestion of a rate hike coming in the future.
The RBA are in a tricky position as house prices in both Melbourne and Sydney have been falling recently so any interest rate hike could cause more problems for the economy so I think the tone may be rather cautious and this could see the Australian Dollar shows signs of weakness against the Pound following the announcement made on Tuesday.
Clearly the Brexit remains the over-riding factor in determining what may happen for the Pound against the Australian Dollar and with claims made by Brexit Secretary Dominic Raab that a deal could be reached by 21st November if there is any truth behind this story could we see the Pound make gains vs the Australian Dollar later on this month?
If you have a currency requirement involving Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]
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