We have seen Sterling make significant gains over the Australian Dollar more so than against other currency pairs. We saw a spike yesterday following news that Chief Brexit negotiator for the EU, Michel Barnier had said that he thinks a Brexit deal can be tied up realistically in 6-8 weeks. Be aware he has made similar statements recently and then retracted them. The Australian Dollar is being heavily impacted by external political and economic factors created by the trade tarrifs against China; further information on this in the Aussie Dollar report below. The table shows the range of GBPAUD exchange rates during trading hours on Monday and the difference in return you could have achieved when selling £200,00.00 during the high and low points of that day.

Currency Pair% ChangeDifference on £200,000
GBPAUD0.98%AUD $3540

Although, I feel there could further troubles for Sterling I feel Australia also has serious problems to contend with. Australia’s heavy reliance on China purchasing it’s exports could hurt the Australian economy.

AUD feels the knock on impact of China's economic uncertanty

The US are in a trade war with China that could escalate with future tariffs already being prepared. China have vowed to match the tariffs Dollar for Dollar, unfortunately this is not sustainable. This does not bode well for the global economy and specifically, Australia due to its heavy reliance on China.

The cost of living down under is also creating economic problems.

With Australians seeking out high wage growth areas such as Sydney and Melbourne the cost of living is becoming more and more expensive in these areas. These inflated living costs are hurting the Australian economy and in turn the Australian Dollar due to citizens being forced to spend their hard earned money on living expenses and shying away from unnecessary luxury goods. 

Although I can’t see much room for further improvements for the Pound against the Aussie it is one of the few currencies I feel there is a possibility for gains despite Brexit.

Unemployment Rate – Thursday 13th September

During the early hours of Thursday morning we will see the release of Australian unemployment data. I expect there could be a slight rise in the figures which has the potential to create further Australian Dollar weakness.

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.