Pound to Australian dollar exchange rates: G20 summit to influence GBP/AUD rates

Pound to Australian Dollar Forecast: UK policymakers talk down the Pound

World leaders from 19 countries coupled with the European Council will meet today in Japan for G20 economic summit. The aim of the summit is to discuss important financial and economic issues. No surprises climate change and the crisis in Iran are hot topics, however the separate talks between Presidents Donald Trump of the US and Xi Jinping of China should steal the headlines.

Over the last 12 months both Presidents have been at loggerheads about trade. Donald Trump imposed tariffs on China and no surprises shortly after China retaliated with tariffs of there own. Central bankers around the world have warned that the protectionism approach, will weigh heavily on the global economy and as the Australian dollar is a commodity currency the value fluctuates on any news.

If both Presidents leave the summit, shaking hands with smiles on their faces announcing the trade war is coming to an end, I expect the Australian dollar to strengthen. However, if more tariffs are set to come into play in the upcoming months, this could provide an opportunity for clients that are buying Australian dollars with pounds.

In other news, this morning UK GDP was released at 0.5% as expected and this has done little to the pound to Australian dollar exchange rates.

Pound to Australian dollar exchange rates next week

Heading into next week the RBA interest rate decision on Monday night / Tuesday morning, will be watched closely by investors. The RBA have hinted at cutting interest rates further in a bid to stimulate wage growth and the over-inflated property market. If the RBA do leave interest rates unchanged for July, keep a close eye on the minutes as they could give indication of the RBA’s next move.

In regards to the UK, economic data is fairly light. Markit Manufacturing numbers and mortgage approvals are set to be released on Tuesday. Manufacturing is set to receive a boost, but this is no surprise as last months numbers disappointed, however mortgage approvals are set to drop from last month.

If you are buying the Australian dollars and would like assistance, or would like to discuss GBP/AUD exchange rates in more detail please feel to contact me directly using the form below.