Recent impressive Chinese data has helped the Australian Dollar this week, making the likelihood of an Australian interest rate cut less likely, for the short-term at least. With China being Australia’s main trading partner, positive Chinese announcements do tend to strengthen the Australian Dollar.
Following this positivity for the Australian Dollar, the effect on the GBP/AUD exchange rate has been compounded by the added pressure on the Pound’s value currently. However, I believe we are starting to see signs of support for the Pound, with the pair stabilising following a sustained period of drops over the last few weeks.
It now appears that the Pound’s slide has slowed as the GBP/AUD pair has found support at around 1.60, although it did dip below this level, to 1.58 for a little while yesterday. If you have a currency exchange requirement that involves GBP and AUD do bear in mind that further downside is possible for the Pound, especially given its current roller-coaster ride following the EU Referendum and the vote in favour of the UK leaving the EU. This also looks due to continue with uncertainty surrounding Sterling with Article 50 not being enacted until Q1 2017, a constant stream of news about Brexit and every piece of economic data being scutinised.
Some analysts are forecasting the GBP/AUD rate it to hold around the 1.60 mark. If this is the case the timing of any exchange will be crucial to maximise return look for spikes in the exchange rate.