Getting the best GBP/AUD exchange rate can be achieved by understanding what is driving GBP and AUD rates and the service of a specialist currency broker. Below are GBP/AUD movements in the last 30 days when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The Pound dropped in value against the Australian dollar during Tuesday’s trading, following poor UK PMI Construction data. The official reading of 48.1 came out under the expected 50.8, with any figure under 50 indicating a contracting of the economy. This alongside Monday’s poor Manufacturing figures has knocked Sterling’s value against the AUD, and GBP/AUD rates have dropped by over two cents since the start of the trading week.
The markets focus had been primarily on The Reserve Bank of Australia’s interest rate decision, with a recent report indicating that the central bank may not raise rates until 2019. With interest rates being kept on hold as expected the Australian dollar found little support before this week’s poor UK data releases.
In the short to medium-term it is likely that investors will need to see evidence that the Brexit negotiations are progressing, in order for the Pound to make any aggressive move above current levels. A recent downturn in Australia’s economic output and along with the recent rate report, had conspired to weaken the Australian dollar’s value. It was only a few weeks ago that GBP/AUD exchange rates were trading close to 1.60, so the current levels could still be seen as the opportunity those clients holding GBP have been waiting for.
In recent weeks the Pound has also benefited from talks of a prospective rate hike by the Bank of England but this is still not guaranteed and may have already been priced in to Sterling’s current value to some extent.
For the reasons above I would not be gambling on a major spike for the Pound over the coming weeks, with any trade around 1.70 offering significant value in my opinion.
The next economic data releases to look out for this week are retail sales numbers, trade balance, including import and export numbers and RBA assistant Governor Debelle’s speech released first thing tomorrow morning.
For more news on how upcoming events and data releases could affect your Australian Dollar transfer, call our trading floor on 01494 725 353 or email me directly at email@example.com.
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