Sterling spiked upwards in excess of 2% against the Aussie Dollar earlier today, meaning that we’ve seen the Pound gain over 10 cents against the Aussie Dollar in just over a week.
When compared with GBP, the Aussie Dollar has been feeling a lot of downward pressure as of late.
As world leaders such as US President Barack Obama, International Monetary Fund managing director Christine Lagarde, and Bank of England governor Mark Carney have all lent their support to the ‘Remain’ campaign and highlighted the risks to the UK’s economy moving forward should the British public opt to leave the Eurozone.
The comments from these world leaders have seen an increase in sentiment towards Sterling as its becoming less likely that the British public will vote to ‘Leave’ the Eurozone. This is also being reflected in the most recent ‘Brexit’ polls which are pointing towards a ‘Remain’ lead, once again boosting the value of Sterling.
With suggestions from Reserve Bank of Australia (RBA) members such as Glenn Stevens that AUD is overvalued, this could be the turning point for GBPAUD, and I would be surprised to see GBP build on these recent gains moving forward, providing there isn’t a swing in the Brexit polls.