The Aussie has risen in recent weeks as investors become more positive regarding the outlook on Australian interest rates. Where a series of cuts had been expected to come, the previous successive 2 rate cuts appear to be all the RBA (Reserve Bank of Australia) are considering for now, as per the minutes of their latest meeting.

Currency Pair		% Change (Month)	Difference on £200,000
GBP	AUD	4.37%	AUD $14,152

Ahead however, we could see cuts, as the RBA have signalled their intent to cut if needs be. With global growth slowing, and China, Australia’s largest trading partner reporting their slowest growth in 27 years, the trajectory had suggested to the market more cuts might be forthcoming.

The prospect of the trade wars too, which have been a drag on global growth and confidence, becoming more problematic also remains. Whilst the US and China have agreed to a truce for now, the potential for further issues remains.

Coronavirus continues to threaten the Australian economy

Best time in 2019 to sell AUD from GBP

Uncertainty for the pound over Brexit and the stronger Australian dollar has seen the GBP/AUD level fall to its lowest levels this year in the last week, reaching fresh interbank rate lows of 1.7632 last week.

Assistant Governor of the RBA (Reserve Bank of Australia) Kent Lowe will give a speech this evening which might provide some news on monetary policy moving forward. The subject of interest rates is topical for the Australian dollar and could lead to some news and movement for the currency.

GBP/AUD levels will also face the latest news on Brexit with the new UK Prime Minister being announced tomorrow and a speech due on Wednesday evening. The potential for movement on sterling seems increased owing to the significance of Brexit and the direction a new Prime Minister might have on what kind of Brexit the UK takes.

To learn more regarding the latest news on the Australian dollar you may wish to speak to your account manager.

Read our monthly currency forecast

Download here

News

The key reason for Sterling’s current vulnerability however is Brexit. If there is one thing investors do not react well to it is uncertainty and at present it is extremely difficult to call whether or not a deal is going to come to fruition.

22nd December 2020

Sterling Remains Fragile With a Brexit Deal Hanging in the Balance

Sterling is in an extremely fragile position following Boris Johnson’s announcement on Saturday that many areas of the UK would be placed into Tier 4 lock down.

By Daniel Johnson

Delay to the US Election Result Sees USD Gain Against GBP and EUR

22nd September 2020

Global Stock Sell-off Sees GBP Lower Against EUR and USD

GBP falls as the UK looks likely to implement tighter nationwide restrictions to curb the spread of the coronavirus.

By Rob Harold

Sterling Flying as GBP/USD Rate Breaches 2-Year High

3rd August 2020

Pound to US Dollar Rate Climbs by 6% Through August

GBP ended last week as one of the top currency performers, will sterling's resurgence continue?

By Joseph Wright

N. Mans

Jonathan Watson as ever, ensures a smooth, reliable and trustworthy transaction for the second time of service! Delightful to deal with – efficiency personified. Thank you Jonathan. Would recommend highly – 5Star.

Read our testimonials

R. Sandell

Excellent initial guidance, and during the transaction regular communication and updates. Dealing with Jonathan Watson was a pleasure. Very reassuring.

Read our testimonials

C. Morris

Jonathan Watson provided very helpful advice throughout the process, as well as immediate responses to our inquiries. He and his team were patient and thoroughly professional, which helped us through some stressful moments following the sale of our property in France.

Read our testimonials