This Australian Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing Australian Dollars at the low and high levels during trading hours yesterday.

Currency Pair% ChangeDifference on £200,000
GBPAUD0.9%$3060
Where next for GBP AUD exchange rates?

GBP/AUD Rates

The Pound has continued its recent rally against the Australian Dollar with rates briefly breaking over 1.73 for this pair. After the very dovish minutes from the Reserve Bank of Australia (RBA) the Australian Dollar is firmly under pressure with little chance of an interest rate hike down under anytime soon. The markets appear to still be digesting those minutes which made a point of highlighting that the Reserve Bank of Australia chose not to go down the route of Quantitative Easing to the extent that other central banks did and that is doesn’t feel under any pressure to tighten monetary policy at this stage. The tone coming out of the RBA is that a rate hike is completely off the table and will not even be considered until late 2018 and beyond. 

There is currently an excellent opportunity for buying Australian dollars once again with levels over 10 cents higher than those August lows for GBP AUD.

With the strong stance coming from the RBA there is every chance rates could break through 1.75 for GBP AUD especially if there is an interest rate increase from the Bank of England later today.

Political Upset Down Under

The Australian dollar could also come under added pressure as a result of five MP’s who were found to have dual nationality which resulted in resignations. The 1901 constitutional laws state that anyone who holds another nationality is unable to serve in the House of Representatives. Many MP’s appeared to be unaware of the requirement and there is pressure on the government to check all the other MPs to ensure they are not citizens of foreign countries. There are at least another 200 that may need to be confirmed. Other politicians down under have referred to the situation as close to a constitutional crisis. There are likely to be more developments going forward and this bodes badly for the Aussie.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.