The pound to Australian rollar rate has been under pressure for the past month as our regular readers and those following the pair will be aware. Today the pair have traded as low as 1.8180 at the lowest point and at the time of writing they sit just north of 1.82.
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Through the month of May the pair lost almost 3% from their highs in the first week up until last week, as they could be seen trading over 1.88 just a month ago.
The decline has been gradual for the pound, and it was initially prompted by the break down in cross party talks between the Conservative and the Labour Parties after there had been hopes of them coming to an agreement. The breakdown was the demise of UK Prime Minister May as she has now announced her resignation date, and now one of the main drivers for the pound moving forward will surround the race to become the next Prime Minister. Some might argue that the fall for pound is a consequence of the leadership race as there are a number of candidates that seem prepared to push forward with the idea of a no-deal which could see the UK leave the EU on the 31st of October without a deal in place.
Pound to Australian dollar forecast
Looking at the price movement for the pound and the Aussie dollar, we could see sterling find some support around the current levels or just below, as 1.80 is likely to act a support level for the Pound.
At the same time there has been some disappointing data released from Australia recently, and this has poised the markets for a potential interest rate cut from the Reserve Bank of Australia (RBA) at the next meeting which will take place as soon as the early hours of tomorrow morning. The decision will be announced at 5.30am UK time and could result in price movement so do feel free to register your interest with us if you wish to be updated regarding the rates. You can contact me directly using the form below.