Was the weakening of the Australian Dollar against Sterling a flash in the pan? (Tom Holian)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

Sterling Australian Dollar exchange rates hit a 6 year high early on in the week as news broke that commodity prices hit a 16 year low and Chinese data came out a lot lower than expected over the weekend.

However, the negative movement for the Australian Dollar was short-lived and we have seen rates drop to 2.14 for GBPAUD rates at the end of today’s trading session.

Europe and the US have seemingly shrugged off the bad news at the start of the week and oil prices have started to rise and in particular the US GDP figures out yesterday came out a lot better than expected which helped to strengthen the USD and the AUD vs Pound Sterling.

It could be argued that the weakening for the Australian Dollar was short-lived but for me the problem for the AUD is that the economy is still struggling and too dependant on China.

Therefore, I think we could see longer term a rate cut down under and therefore we could see Sterling vs Australian Dollar exchange rates on the rise.

If you have got a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk