The Pound has really been struggling against the Australian Dollar in recent weeks owing to the ongoing political uncertainty in the UK.
The Pound is now trading at its lowest level against the Australian Dollar in a few weeks and I think we could see further losses ahead for Sterling exchange rates.
Next week the Reserve Bank of Australia will once again meet to decide the future of monetary policy down under.
With the Australian economy coming under more and more pressure recently there is a strong likelihood that we’ll see a cut in interest rates on Tuesday morning.
As this is widely anticipated it may not have the impact on exchange rates that you may think so if you’re banking on a big movement for GBPAUD exchange rates it may not happen.
The main thing to look out for will be the statement from the RBA as if they hint that there are more interest rate cuts planned for the future then this could weaken the Australian Dollar so make sure you pay close attention to the announcement.
Indeed, some analysts think that the RBA should cut interest rates by 0.5% but I think that would be too aggressive for the time being.
We also have the release of Australian retail sales due out on Tuesday morning. Retail sales are a good indicator as to the health of an economy so any further signs of a slowdown will provide the RBA with further justification to cut interest rates.
Then on Wednesday we have another big data release for Australia with the latest GDP data for the first quarter. The expectations are for growth of 2.5% which would be an improvement from the previous quarter of 2.3% for year on year so we could see some volatility for GBPAUD exchange rates during the middle part of next week.
If you have a currency transfer to make and would like to save money when buying Australian Dollars then contact me directly for a free quote and I look forward to hearing from you. I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident that I can also help you with the timing of the trade.