The Australian dollar has increased in strength against the pound mainly due to an increased trade surplus and the fact the pound has been on the back foot this week as economic data fails to impress. The expectation that the pound would rise against the Australian dollar would appear to be truer longer term so for now I would be looking to sell Australian dollars for sterling.
The current rate is a one month high for selling Australian dollars for the pound and with Australia’s economic outlook remaining fairly subdued and there remaining a strong chance of the UK raising interest rates, the forecast is the pound will rise against the Aussie. Just look at where rates have been historically, the pound will now slowly start to return to more historic levels as sterling increases in strength and the UK gets closer to an interest rate rise.
It is impossible to trade at the absolute top or bottom of the market so if you are selling Australian dollars to buy sterling it is important to be sensible and perhaps cut your losses. For more information on this please don’t hesitate to contact me directly on [email protected]