The positive run for the Australian Dollar came to a sudden end following this morning’s GDP figures for Q3. The Australian economy posted its worst figures since the financial crisis, sparking fresh concerns for Reserve Bank of Australia.
The Euro and US Dollar both rallied against AUD following the release but have since crawled back their gains during the course of the trading morning.
The release is likely to be playing on future decisions by the RBA, who may look to cut interest rates as low as 1% to tackle slower growth, presenting further opportunities for GBPAUD in the coming weeks. On December 20th the RBA will provide meeting minutes on their justification for keeping interest rates on hold this week, but in light of recent data its likely that further cuts to its base rate of 1.50pc could emerge.
GBP/AUD continue to test 1.70
The Pound has not made further gains against the Australian Dollar following the release, due in most part to Brexit uncertainty which is set to continue into the new year. But a combination of a potential interest rate cut coupled with a US interest rate hike next week could boost Pound to Australian Dollar exchange rates in December.
A breakthrough of 1.70 could emerge for the pair but sentiment around the Pound remains negative, with the UK Government expected to trigger Article 50 in the coming months. Whilst we anticipate some gains for GBP/AUD its plausible that any movements in Sterling’s favour could be short lived.
Current exchange rates
The below table provides GBP/EUR, GBP/USD, GBP/AUD and GBP/CAD exchange rates which are accurate at the time of writing.
|Currency Pair||Current Interbank Exchange Rates|
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