GBP/AUD exchange rates have dipped during Tuesday’s trading, with Sterling losing almost 2 cents from the high this morning. With the pair now floating around 2.09 on the exchange are we finally seeing some light, at the end of what has been a very dark tunnel for any clients selling AUD of late.
With GBP/AUD trading at some of the best levels of the past 6 and a half years, it has certainly a very attractive position for AUD buyers to be in. A slowdown in China’s economy and the current negative media reports regarding the major dip on their stock exchange, has certainly had a negative knock on effect for Australia. Due to the trade links between the two countries Australia’s economy remains reliant on a high demand for its vast supplies of raw materials, so when China’s demand falls this ultimately hurts the AUD.
However, often once you’ve seen such aggressive moves in the market there is a then a realignment and it may be we are witnessing the start of one on GBP/AUD. With a deal now in place between Greece and its creditors, this could be seen as a major boost for the global markets. Once this occurs you usually see investors move away from safe haven currencies such as the USD and move into more riskier currencies such as the AUD, so this could help to solidify the AUD’s position and bring some much needed despite after a difficult few months.
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