GBP has found plenty of resistance against the AUD over recent days, with the pound struggling to make inroads despite an upturn against the majority of the other majorly traded currencies.
GBP/AUD rates have fallen from a high of 1.86 this week, with sterling now trading below 1.84. With this level currently providing plenty of protection for the AUD, the key question now is whether this is a temporary blip or is this the start of a more defining trend?
As mentioned, the AUD has managed to make inroads against GBP despite the fact the pound has been well supported against the EUR and up until yesterday the USD as well.
In fact, it was not just the AUD that found some support but all of the commodity-based currencies. The AUD, CAD & NZD all managed to curb any significant losses against the pound, with each finding its own levels of support over the past 48 hours.
One of the driving factors behind this improvement for the AUD was a spike in commodity prices, with an increase in value of iron ore (Australia’s largest export), proving particularly beneficial for the Australian economy and ultimately the AUD.
This improvement brought with it a welcome respite for those clients holding the AUD, which has struggled over recent months to make any sustained impact against the pound.
A slowdown in global trade and a softening of China’s demand for Australia’s exports, has caused investors to shy away from the AUD. Add to this a record low interest rate of 1.5% and the once attractive AUD has failed to attract the necessary support to boost its value significantly.
However, this week’s improvement alongside the on-going uncertainty surrounding Brexit, has given those clients holding AUD some optimism that a move back towards 1.80 is now feasible.
To discuss how this could impact GBP/AUD interbank exchange rates relating to an upcoming currency transfer of yours, use the form below to get in touch. I’ll be happy to give you a call and discuss your enquiry.