The pound has started to fight back vs the Australian dollar after falling to 1.95 earlier this week. GBPAUD exchange rates are now trading above 2 and even broke through 2.01 on the Interbank level over the last few hours.
The Australian dollar is heavily influenced by what is happening with China and with rumours circulating that things are slowing down in terms of the virus this has allowed the Australian dollar to show sings of improvement.
The Australian dollar has also seen the benefit of further stimulus by the US Federal Reserve (Fed) which has encouraged an increase in risk appetite. However, the gains for the Australian dollar could be short lived vs Sterling.
The Australian government has introduced a AUD$66bn plan to support the Australian economy and this briefly gave the Australian dollar some much needed support.
Bank of England Decision and influence of Pound Australian Dollar Exchange Rates
Later today the Bank of England are due to meet to discuss their latest monetary policy decision. The central bank are likely to keep rates unchanged after the recent emergency cuts.
The UK government is also in the process of announcing plans as to how it will support the self-employed workers of this country.
Apart from the Bank of England decision there will be little economic data released both in the UK or Australia over the next few days so the focus will remain on what is happening with the global economy in terms of its influence one Sterling Australian Dollar exchange rates.
Many of my clients have been opting for Limit Orders which allows you to pre-agree a rate and the beauty of these contract types are that they work around the clock so whilst Australia is ‘asleep’ your order can be automatically placed.
If you would like to discuss an upcoming AUD exchange, please contact me directly using the form below. I’ll be happy to get in touch personally and discuss your enquiry.