How is Brexit affecting the current GBP/AUD rate?
The pound to Australian dollar outlook has been mixed owing to the conflicting messages being received on both currencies. The pound has been suffering owing to the uncertainty of Brexit, but has also found some favour on the premise of Boris Johnson delivering a deal. GBP/AUD levels have been rising on the interbank rate above 1.80, trading very close to 1.85 at the end of September highs.
What can we expect next?
Since the highs reached above, we have not been higher since May 2019. We are currently trading at 1.8309 on the current interbank rate, which is despite the RBA (Reserve Bank of Australia) cutting interest rates recently. The Australian dollar has been losing ground because of the uncertainty around the global economy and what lies ahead.
Moving forward, the currency market will have plenty to react too, including the development of the Trade Wars, plus the outcome on Brexit. Clients looking to buy or sell Australian dollars for pounds will have plenty to consider.
Australian Retail Sales data released tomorrow
Tomorrow, we have the latest Australian Retail Sales, which will be a key concern for the currency market as the Australian consumer is vital to the Australian economy. We also finish the week with the latest Non-Farm Payroll data, which is likely to see increased volatility on the US dollar, which can trigger movements on the Australian dollar.
As a commodity currency, that is influenced by global events and sentiments on trade, the Australian dollar will rise and fall with global expectations on trade, and how that relates to the Australian economy. Australia exports many raw materials including iron ore for steel, and Aluminum.
GBP/AUD levels have been trading between 1.7815 and 1.85 in the last 3 months, we are only 2 cents off that interbank rate high.
Please do contact me if you wish to discuss or run through any of the events ahead which may see us revisit, or move away from these kinds of levels.