At the time of writing the Pound to Aussie Dollar buying rate is lodged just below the 1.80 mark, with its next move likely to offer the pair direction as the year progresses.
The highest the pair have traded this year is 1.8448, and considering the pair have traded in the 1.60’s over the past year we’re still much closer to the annual highs than lows. This is something I think those of our readers exchanging Pounds into Aussie Dollars should consider, especially with the pair currently testing the 1.80 mark.
Personally I think that 1.80 will either act as a resistance, and we won’t see GBP/AUD break that level again, or we’ll see if break through and push towards 1.90 but how the Brexit continues to play out will likely determine GBP/AUD’s price movement.
Later this week at the EU Summit the Brexit will be discussed. This starts on the 29th of June from 8am UK time so those of our readers that wish to plan around this event has plenty of time to get in touch and make arrangements. With little economic data of consequence set for release down under this week I think the EU Summit and what’s said will likely drive GBP/AUD this week.
The governor of the Bank of England, Mark Carney will be speaking tomorrow and owing to his position the markets can react quickly to his comments. He’ll be speaking around 9am UK time and I think those with currency exchange plans should be aware of this.
Interestingly the voting members of the Bank of England recently voted 6-3 in favour of keeping interest rates in the UK on hold, although the 3 members hoping for a rate hike soon is a bullish sign and therefore any allusions to future monetary policy changes from Carney could result in fluctuations for the GBP/AUD pair.
Friday morning is another eventful time this week owing to the volume of data due for release. UK Mortgage Approvals for May are set for release along with UK Gross Domestic Product data covering the 1st quarter of this year. The expectation for economic output growth (GDP) is just 0.1% for Q1 this year compared to last year, and I think we could see a sell-off in the Pounds value if this data disappoints and shows a decline.
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