This Australian Dollar report will address the factors that are likely to affect exchange rates today if you are buying abroad or making a currency transfer. The table below shows the difference in AUD you would have achieved when buying £200,000.00 during the high and low points of the past month.

Currency Pair% ChangeDifference on £200,000
GBPAUD2.4%AUD $8,360
AUD Forecast – Australian Economy Remains Under Pressure

GBP/AUD moved back through 1.72, with the Pound finding support during the early part of the trading week.

Whilst almost every other developed nation has found hardship over recent years, falling into either a recession or facing a major downturn in their economic output, the Australian economy seems to have weathered the storm better than others.

It is now 25 years since they last tasted a recession but could things be about to change?

The UK economy as we well know is facing a long road to recovery, as we try to navigate our separation from our EU neighbours and despite some support for the Pound of late, the UK is without doubt fighting an uphill struggle as it tries to adapt to its new surroundings.

The Pound has lost value against the AUD for much of this year, with GBP/AUD rates hitting 1.64 only a few months ago, before its upturn back to the current levels. The Australian economy on the other hand has continued to perform relatively well but those clients holding AUD need to remain cautious, as a senior economist admitted in the report, they “have been riding their luck to some extent”.

What is driving Australia’s economy?

Australia’s economic prosperity is for the most part driven by the export of their vast supply of raw materials. This is mainly iron ore and liquified gasses, which are then shipped to China their main trading partners.

They have also benefited from a booming property industry, driven by low interest and easy credit. A high influx of immigration has also helped to drive their economy forward, whilst others have faltered and this has all combined to help support headline growth.

However, looking more closely and these factors have helped mask other economic short-comings, in particular a flagging Manufacturing & Production industry. This was once the envy of other nations but aging, high-cost infrastructure has slowed these sectors dramatically.

If these economic problems were to manifest themselves, then the current value against Sterling could look extremely attractive in the future and as many are predicting, the bubble must burst at some point.

Brexit negotiations remain stagnated and this is helping to inadvertently boost the AUD’s value but were they to take an upward trajectory, the Pound could find support and a move back towards 1.75 is certainly not out of the question.

Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. Feel free to get in touch with any queries you have about upcoming transfers. You can call me 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.