The Pound fell from its recent highs against the Australian Dollar during yesterday’s trading session after the Prime Minister announced that she would be delaying the House of Commons vote on Brexit after failing to get anywhere near the votes needed to approve the current deal on offer.
Theresa May will be meeting with Dutch PM Mark Rutte and German Chancellor Angela Merkel in an attempt to try and curry favour in support of changing the current deal including amendments to the current backstop.
With such a fall in the value of the Pound yesterday we have already seen the Pound make some gains against the Australian Dollar as it appears as though Sterling was oversold during yesterday’s trading session.
As yet no date has been offered as to when the next vote on Brexit will happen but the suggestion is that the final deadline could be 21st January.
Australian Housing Market Shows Signs of a Struggle
Turning the focus back towards what is happening in Australia we have seen Australian house prices fall in the third quarter of this year highlighting a problem with the Australian property market as well as causing a headache for the Reserve Bank of Australia.
Indeed, with the RBA having forecast growth of 3.5% for both this year and next I think this could be even more difficult to hit.
As house prices have been falling this means that the RBA will find it even more difficult to increase interest rates so every time we see a slowdown in economic data down under this causes a problem for the Australian Dollar, which is good news if you’re looking to buy Australian Dollars with Sterling.
Clearly the Brexit talks are causing the most movement for the currency pair but the Australian Dollar, as far as I’m concerned, does have an underlying weakness and this is why I think we could see further problems ahead for the Australian Dollar.
This evening Westpac will release the latest Consumer Confidence figures for December and as the economy appears to be coming under pressure I think we could see another negative release which could see the Pound improve against the Australian Dollar.
If you would like to save money when buying or selling Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.