Clients looking to buy or sell the pound against the Australian dollar have been presented with some of the best rates since the Brexit vote lately, with GBPAUD levels rising above 1.80. This could all very quickly change if we see anything negative arising from the Conservative Party Conference which continues this week.
The big driver on the GBPAUD pairing is of course the latest twists and turns on Brexit, it is no secret that many Conservative Party members do not like which path Theresa May is taking them on. The big question is will there be any kind of upset this week, or is Mrs May safe?
I think there is plenty of scope for further issues ahead for Mrs May, examples include the EU Summit and also expectations for how well the Chequers plan will be received. Any negative news at the conference this week could easily see GBPAUD levels slipping lower below 1.80.
This week is crucial for GBPAUD levels from the Australian side too as we get the result of their latest interest rate decision which will take place this evening. Currently, Reserve Bank of Australia (RBA), is in the process of managing the interest rate outlook and providing information to the market on future expectations.
It appears that the Australian economy is not quite yet in a position to be able to manage effectively an interest rate hike, consumers are heavily indebted and there are also concerns about growth, and also the economic outlook for partners like China.
The Trade War issues will also weigh on the market outlook and clients with a position buying or selling Australian dollars could be in for a choppy phase.
If you have a position buying or selling GBPAUD and wish to get the latest updates about factors that could impact your exchange, please do not hesitate to get in touch. Use the form below to request further information, or to ask another question. I’ll be happy to contact you directly and discuss your request.