Pound to Australian Dollar Exchange Rate: Could the Pound Hit 1.90 vs the Australian Dollar?

EUR GBP Moves Higher Ahead of UK GDP Update

The pound is now trading very close to its best levels to buy Australian dollars since the original referendum in June 2016 with GBPAUD interbank rates around 1.8965 at the time of writing.

Sterling Gains Against Australian Dollar as Aussie Unemployment Data Shows an Increases

The pound has been improving against a number of different currencies in recent times which has also seen the pound hit a 6 month high to buy euros. The Australian dollar has been struggling with the recent unemployment data showing signs of increasing. This could provide evidence in support of a further interest rate cut by the Reserve Bank of Australia which could potentially weaken the Australian Dollar if this happens.

Aussie Unemployment Increases

The jobless rate increased to 5.3% from 5.2% compared to last month with 19,000 jobs lost. The expectation was for a gain of 16,200 so the figures were disappointing. Meanwhile, Chinese economic data highlighted a slowdown in the world’s second largest economy. Chinese Retail Sales came out lower than expected as well as poor Industrial Production figures.

RBA to Potentially Cut Rates Again Next Year

The Reserve Bank of Australia has already cut interest rates three times during the course of this year. Therefore, could we see further rate cuts as we enter next year?

Chances appear to be increasing of a rate cut as early as February. Typically, when a central bank cuts rates this can often result in the currency weakening so make sure you keep an eye out for any comments coming out from any members of the RBA in the near future.

The pound briefly touched above 1.90 earlier this week so could we see further improvements early next week?

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