GBP/AUD pairing tests 1.79 exchange rate
The pound to Australian dollar exchange rate has continued to fall through July so far, and at the time of writing the rate is testing the 1.79 support interbank level once again. Ever since the pair dropped below 1.80 at the beginning of the month, they have remained below this benchmark level and moving forward I think it’s likely that they will remain below 1.80 until there is a turnaround in the UK’s economy and also a bit more political certainty.
Sterling struggles against majority of currencies
It’s not just the Australian dollar that the pound has been struggling against. It’s at annual lows against the US dollar and if there is another negative day for the GBP/EUR rate today, it will mark the 10th week of consecutive drops for the GBP/EUR pair which would be a record.
A number of key figures within the UK have recently shed light on their concerns regarding a potential no-deal Brexit as it’s being labelled. Richard Branson has predicted that cable (GBP/USD) could drop as low as parity which would be a considerable drop from the current levels. Should sterling experience another significant drop it’s likely that GBP/AUD would see a fall below its current annual low which is in the 1.72’s although there is a long way for the pair to fall before hitting those levels again.
There are no economic data releases out of the UK today, so politics is likely to remain the key driver of market movement until at least next week.
Economic data releases next week to influence GBP/AUD exchange rates
Early next week there will be a raft of data released out of China which is worth watching out for if you’re following the Aussie dollar’s value. China is the main trading partner of Australia so a pickup in the Chinese economy is likely to result in further gains for AUD against the pound, and feel free to register your interest with me if you wish to be kept updated regarding the GBP/AUD rate and any major movements.