The Pound to Australian Dollar exchange rate has nudged 1.80 but quickly retraced the steps owing to concerns over Brexit. The UK also suffered from some poor economic data today with Manufacturing data showing a fall in the PMI, Purchasing Managers Index data. What lies ahead for GBPAUD rates and what is the important news?
The RBA (Reserve Bank of Australia), will release their latest interest rate decision this evening which could well be a market mover on the Australian Dollar exchange rate. Whilst no change in policy is expected, the markets will be closely monitoring the news for developments which might see some shifts.
The RBA are expected to keep rates on hold for the foreseeable future but the market had been believing that the next move, when it happens, would be upward. This will be further evidenced this evening when we get the latest news from the RBA, I would expect the Pound will more than likely lose ground against the Aussie.
This is because there are a number of factors driving the Australian Dollar aside from domestic issues. One of these topics is China and also the developments of Trade Wars. Since China is a major trading partner of Australia, any big developments in the Trade Wars can have a big effect on exchange rates.
I personally feel the initial fear factor over the Trade Wards is subsiding and we are not seeing anywhere near as much damage as we could to the global economy. Therefore, I see the RBA citing this as a reason to be more optimistic in their outlook.
Clients looking to buy or sell GBP/AUD might find some further important news in the week with the latest UK Services data on Wednesday and then on Friday with US data too. American economic data effects the global economy and this might see some movement on the Australian Dollar.
If you have a currency exchange to make I think Brexit uncertainties and a stronger Aussie could push GBP/AUD back into the mid 1.70’s. For more information on the best strategy to maximise any currency exchanges, please don’t hesitate to speak to me by emailing [email protected].