The Pound has improved overnight versus the Australian Dollar after the US Federal Reserve announced that they have hiked interest rates to 2.25% – the 8th US interest rate rise since December 2015.
This was the 3rd hike since the start of 2018 in the US and the central bank suggested that another interest rate hike may be coming, which is likely to occur in December.
However, they did suggest that this could be the end of the interest rate hiking cycle and they will see how the Trade Wars go over the next few months before contemplating any further hikes.
Riskier commodity based currencies have all weakened following the US rate hike and this has created a good short term opportunity for anyone looking to buy Australian Dollars with Pounds.
We have seen further gains today for the Pound vs the Australian Dollar after US GDP data came out better than expected earlier this afternoon which fully justifies last night’s US interest rate decision.
We could see further movement for GBPAUD exchange rates during tomorrow morning when the UK releases the latest GDP figures for quarter two.
The Pound hit 1.82 against the Australian Dollar earlier on today and I think depending on how the Brexit discussions go in the next few weeks I think we could see a lot of volatility ahead so if you want to buy above 1.80 it may be worth getting something done in the short term to avoid the risk.
In three weeks time, on 18th October the EU will hold their next EU summit and the focus will be clearly on what is happening with the Brexit situation.
At the moment the Chequers plan was rejected and as yet Europe has not come up with an alternative so at the moment we are at a stalemate with the discussions which does not bode well for Sterling’s prospects against a number of different currencies including vs the Australian Dollar.
To find out more or for a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you.