The Pound is now trading at close to its best level to buy Australian Dollars with Sterling since June 2016 when the Brexit vote took place.
The Pound has increased in value against the Australian Dollar at the end of the week as the cross party talks between the Labour party and the Tories appear to be making progress.
Following the dismal local election results earlier in the week senior Tory members are urging the party to take things further and deliver Brexit.
Indeed, Prime Minister Theresa May has made it clear that the public wanted ‘to see the issue of Brexit resolved.’
With Theresa May insisting that the cross-party talks are concluded by next week this could see Brexit get closer to being delivered than some may expect.
I am still doubtful that Brexit will take place as even if the talks between the two parties improve then they will still have to get it through the House of Commons who have so far shown little interest in approving the EU Withdrawal Agreement.
Turning the focus back towards the Australian Dollar I think we could potentially see the Pound hit 1.90 and above this month as there are a number of major events taking place during May.
We start on Tuesday with the Reserve Bank of Australia meeting to announce their latest interest rate decision. The rumours have been increasing recently that the RBA may be looking to cut interest rates and even if a rate cut does not take place on Tuesday I think that the RBA may adopt a relatively dovish tone and suggest that they are gearing up to cut rates.
One of the only reasons why I think an interest rate cut may not happen next week is that Australia is due to go to the polls this month on 18th May.
Generally speaking when an election takes place this often results in uncertainty for the currency involved and this is why I think we could see the Pound increasing against the Australian Dollar in the near future.
If you would like to save money on exchange rates compared to using your bank and have a currency transfer to make involving Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]