UK Currency Cools against the Australian Dollar on Last Day of EU Referendum Campaigning
Owing to sterling investor fears, te pound to Australian dollar exchange rate has fallen heavily today.
It seems unlikely that a rally will be recorded for Sterling in the short-term, owing to the gap between voting and full result coverage.
The first major movements in an upwards direction would likely be seen tomorrow morning, when it becomes clear which campaign has the strongest hold over votes.
Brexit uncertainty failed to particular dent risk appetite on Thursday, allowing the Australian dollar exchange rates to remain on a stronger footing against rivals.
While the final IPSOS MORI and Populus opinion polls both suggested a lead for the ‘Remain’ campaign this was not enough to encourage a pick-up in the GBP/AUD exchange rate.
The Pound has fallen by around 0.46 per cent against the Australian Dollar today, although on the week it still remains around the monthly high level of 1.96.
This unstable state for the Pound is likely to only amplify in the near-term, with the previous months EU Referendum tensions coming to a head over tomorrow and Friday. The actual result of the vote is expected on Friday morning, at which point Sterling can be expected to soar in the event of an ‘In’ vote or dive if ‘Out’ have come out on top.
The latest development in the EU Referendum campaign came last night, when three leading figures from each side of the debate clashed at Wembley Arena.
Both sides have claimed victory from the debate; while ‘In’ participants called ‘Outers’ out on non-existent promises to curb immigration, former London Mayor Boris Johnson nonetheless received an ovation when he called for Thursday to be a UK ‘Independence Day’.
On the eve of the Referendum, find daily GBP fx rates below:
On Friday the Australian Dollar to British Pound exchange rate (AUD/GBP) converts at 0.519
At time of writing the pound to australian dollar exchange rate is quoted at 1.927.
The live inter-bank GBP-EUR spot rate is quoted as 1.161 today.
Today finds the pound to us dollar spot exchange rate priced at 1.237.
Please note: the FX rates above, updated 19th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
Wild Swings in GBP/AUD Exchange Rate Movement Expected Overnight and Tomorrow
There are no notable pieces of UK domestic data due before the actual Referendum vote itself and because of the weight of the outcome of the vote, any domestic data is not expected to have much of an impact over Thursday and Friday anyway.
As it stands, therefore, it seems as though risk-hungry traders and investors will be shifting Sterling across the last three days of the week, though the flow of trade depends on how investors see the odds of a ‘Leave’ or ‘Remain’ vote being the dominant one.
Recent polls have done little to clarify the situation, alternately putting ‘In’ ahead (Survation) or ‘Out’ in the lead (YouGov).
Australian Dollar (AUD) Exchange Rates in High Demand as National Index Improves
The appeal of the ‘Aussie’ has remained consistently high over the week so far, with gains stemming from the fact that the US Dollar has failed to hold onto its recovering status for a sustained period of time.
In terms of domestic data, the Australian currency has also been helped out by the day’s earlier Westpac leading index for May, which rose from 0.14% to 0.21%.
Less positive was the fact that skilled vacancies rose from 0.8% to 1%, through in spite of this the ‘Aussie’ has remained a generally safe bet for investors so far.
Pair of RBA Speeches Out Tomorrow, US Influence Likely to Remain High
Before the close of the week, a pair of Australian economc events will take place, with both coming from the Reserve Bank of Australia (RBA).
RBA officials Luci Ellis and Guy Debelle are both scheduled to speak, respectively at the Centre for International Finance and Regulation Research Showcase and the Sydney Harcourt Visiting Professorship event.
Outside of these ecostats which are expected during the Referendum voting process, the ‘Aussie’ could also be impacted by further testimony from Fed Chair Janet Yellen this afternoon, which could involve predictions on the future of the US economy and when the Fed may next consider raising the interest rate.
Closing Arguments from Last Night’s Debate Leave Investors Uncertain over Public Opinion
There was no denying that the previous night’s clashes on the Referendum were full of enthusiasm, although when the lights went down, it remained to be seen which side had made the more convincing argument.
On the one hand, Remain supporter Ruth Davidson said:
’There is nothing more positive than having a stronger economy supporting jobs and opportunities, and that's why I believe you should vote Remain’.
On the other, Boris Johnson rounded of the event by saying:
‘…If we vote leave and take back control, I believe that this Thursday can be our country's independence day’.