AUD has been struggling of late against Sterling, with the recent interest rate increase in the US, and Chinese trade tariffs imposed by Trump. The below table shows the difference Australian Dollars you could have achieved when buying £200,000.00 during the high and low points of the past 30 days.

Currency Pair		% Change	Difference on £200,000
GBP	AUD	4.5%	$16,140 AUD

Coronavirus continues to threaten the Australian economy

Could the Pound continue to rise during April?

As predicted in a number of my previous market reports I am confident that the Pound can continue to improve against the Australian Dollar during next month. We are now at the best rate to buy Australian Dollars with Pounds since the EU referendum as global investors appear to be selling off riskier commodity based currencies including the Australian Dollar.

There are a number of reasons why the AUD has weakened.

During the course of this month with one of the main reasons owing to what has been happening in the US during the last few weeks.

Chinese Problems weaken the Australian Dollar

With the US Federal Reserve having increased interest rates earlier this month the US interest rate is now higher than that available down under which has encouraged a selling off for the Australian Dollar. This has been compounded by the political problems caused by the US-China trade wars and as China is Australia’s largest trading partner any problems over there can often have a detrimental impact on the value of the Australian Dollar.

The Australian stock market has also seen a big fall during the course of this week as speculation is increasing as the Trump administration is also considering a crackdown on Chinese investment in technology based companies since the beginning of March.

The Reserve Bank of Australia are due to meet on Tuesday morning and as the economic problems appear to be building in Australia I think the tone will be rather dovish and any expectation of a rate hike coming anytime soon is likely in my opinion to be pushed back. Therefore, early next week I think we could see new highs reached for anyone looking to buy Australian Dollars which could break through 1.86 on the Interbank level.

During this month we have seen gains of 4.5% from the high to the low which highlights the importance of keeping your account manager up to date with your currency requirement.

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.

Download our monthly currency report

Click here

News

29th May 2020

GBP Exchange Rates Continue to Be Influenced by Coronavirus

The COVID-19 pandemic continues to be the main driver for GBP exchange rates with Andrew Bailey stating the UK was entering the second phase of the crisis.

By Tom Higham

3rd April 2020

GBP performs well this week following extensive stimulus measures

Improved global confidence around the economic impact of COVID-19 and the rising potential for an extension to Brexit have led to Sterling strength.

By Jonathan Watson

GBP Benefits From Confidence in New Bank of England Measures

20th March 2020

Global attempts to limit the damage caused by the coronavirus continue.

As the spread of Covid-19 continues to impact the world's economy, measures are being taken by centrals banks to limit the damage.

By Daniel Wright

L. Short

Cyprus

As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.

Read our testimonials

H. Mason

Spain

Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.

Read our testimonials