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 you would have achieved in Australian Dollars when purchasing £200,000 at the low and high levels during the past week.

Currency Pair% ChangeDifference on £200,000
GBP/AUD1.28%$4,336 AUD
GBPAUD rates near post Referendum high

Best rates in 3 weeks to sell Australian dollars for pounds

The Australian dollar has been performing quite well against the weaker pound, in part yesterday and this week it has been on the back of Janet Yellen’s testimony.

Essentially the weaker US dollar has seen funds moved into the Australian dollar making it stronger. Clients looking to buy Australian dollars with pounds look like they will continue to suffer as global events make the Australian dollar an attractive currency to hold.

The Australian dollar benefits from its status as a high yield currency that is used by investors because of its high interest rate. With interest rates at 1.5% this represents a good place to hold funds compared to the rest of the world. The Australian economy is despite some wobbles enjoying the global crown of the longest period of economic growth with no recession in 26 years. Such feats make investors pleased to invest and hold Aussie dollars, particularly against a backdrop of political and economic uncertainty in the UK.

Will GBPAUD rise back above 1.70?

In the short term I would not expect the pound to make any significant drives higher, as explained in the sterling section the prospect of higher interest rates in the UK has I believe this week diminished. With the Australian dollar retaining favour owing to its higher interest rate I expect the Aussie will ensure the GBPAUD rate stays below 1.70.

There is no specific data for the Australian dollar today but we do have some key events next week which could move the rate.
Monday we have Chinese Retail Sales and Gross Domestic Product (GDP) data which can be big market movers for the Aussie as this is their largest trading partner. What happens in China has a massive influence on the Australian economy and currency. Chinese data looks set to continue to be favourable so this will probably only serve to help the Aussie further.

Tuesday sees the latest Reserve Bank of Australia (RBA) meeting Minutes where we will get some clearer direction on the likelihood of any interest rate hikes or cuts frrm the RBA. Such news is vital to the currency markets but all the latest commentary has seen a neutral position. If there was a bias in either direction it is probably towards a hike, such news would only serve to make the Australian dollar more expensive.

Rates for Australian dollar sellers for pounds remain excellent. Selling A$200,000 today would net you £6100 more than at the weaker points for the Aussie back in May. If you have a pending GBPAUD transfer speak to your account manager today to be kept up to date with the latest news.

Thank you for reading today’s Australian Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail 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.