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% ChangeDifference on £200,000
GBPAUD4.5%$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.

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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.