The GBP/AUD rate appears to have settled around the 1.70 level, taking the rate up to a near 3 month high. Over the last few months the GBP/AUD exchange rate has started to give back some of its gains as other central banks have begun to raise interest rates meaning investors can make gains from less risky currencies.
Over the course of the remainder of 2017 there is a good chance of more positive Sterling movements, especially as the Bank of England has suggested it could raise interest rates in November. Whilst the days of the GBP/AUD rate being around 2 might be some way off, I would not be surprised if 1.80 makes a return before the end of the year.
If you’re looking to sell Australian Dollars then it may be worth biting the bullet and trading despite a movement from the best levels. The Reserve Bank of Australia have already declared they don’t see an interest rate hike likely for at least a year which means the AUD may struggle to find short term support.
The GBP/NZD rate continues to lose ground following tied election
The New Zealand Dollar has continued to give up ground against Sterling taking the rate to near pre UK Referendum levels. After the general election in New Zealand last weekend failed to produce a victor there is now negotiations to form a coalition government. In a rather strange turn of events the party that came third are now in the position of power. New Zealand First leader Winston Peters is now being considered the “king-maker” as he must decide which of the main parties in New Zealand he should team up with.
The effect of a hung Parliament and subsequent negotiations has seen the NZD lose several percent points against other currencies. Moving forward there is likely to be further losses taking the GBP/NZD over the 1.90 level in the next few months.