GBP/AUD rates seem to be firmly stuck around the 2.16 mark presently, but have been as low as 2.14 as markets still digest the news about a potential interest rate hike in the US economy, which has caused significant ripples in the financial markets.
The positive news in the US that a rate hike may finally be coming for the first time in a major western economy since the 2007/8 financial crisis is what caused the Australian Dollar to become a less attractive prospect on the financial markets.
The Australian Dollar still has relatively high interest rates compared to other western economies. Depending on the currency in question the return can be up to 8 times higher. This news has reduced the AUD’s appeal as a currency to hold over its competitors, and the capital outflow from Australian Dollars to the US Dollar in the hope of future returns is what caused the initial weakness this week for the AUD against Sterling.
Immediately after this announcement, however, some questionable GDP data in the US economy threw doubt into the markets about the potential for a rate hike. Unfortunately for AUD buyers, this stemmed the flow of funds into the USD and caused the rise on GBP/AUD rates to halt and even reverse for a time.
With uncertainty from now until December when confirmation about whether a rate hike will occur or not, GBP/AUD rates will not be getting any more helping boosts from across the Atlantic.
GBP/AUD are currently at an attractive high in the 2.14-2.16 band of trading levels we have seen in the past 24 hours.
Without further assistance expected for AUD buyers, I strongly encourage anyone who has an Australian Dollar requirement in the coming months to contact me 01494 787 478 and ask the reception for Joshua to discuss a strategy on how to take advantage of these current highs and maximise your Australian Dollar return. The current rates can be fixed to avoid any further swings on the markets affecting your budget. [email protected]