Sterling has remained in a reasonably stable range against the Australian Dollar over the course of the trading week, seeing a drop off earlier in the week following the key resignation from Boris Johnson, only to then creep back up again a few days later when Donald Trump headed for more trade wars with China.
Political uncertainty and further comments from Trump (this time regarding the U.K) over the past 24 hours have both knocked Sterling ever so slightly but all in all we have not witnessed any huge volatility for the currency pairing over the week, which in my view is a bit of a surprise.
Trump appears to be using a lot of this trip to be putting forward his view that his good friend Boris Johnson should be the next Prime Minister, and he is also fairly vocal on his non support for the current Brexit plans.
All of this does not bode well for the performance of Sterling in the coming week or so, anyone with a GBP/AUD requirement may wish to have a keen eye on any further comments from Trump or any further developments with these recent Conservative party resignations.
For those that are not aware, political instability can be damaging for a currency as it will discourage investors so should this all boil over into a full leadership challenge then Sterling may be in for a tough week.
In terms of economic data things appear to be moving along well for the U.K and are also fairly solid in Australia too. One thing to look out for is that it does appear that there is now a high chance of an interest rate hike coming in the U.K on August 2nd.
What will be key for this to happen is for economic data to continue to be solid over the next few weeks, should this be the case and should the U.K avoid major political issues then the Pound could push back above the 1.80 marker in the coming weeks.
If you need to carry out a currency exchange from Sterling into Australian Dollars or to move Australian Dollars back into Sterling then we can help you with this. You are more than welcome to email me (Daniel Wright) on [email protected] and I will be more than happy to get in touch with you personally to explain how I can help.