Sterling to Australian dollar exchange rates have improved beyond on all recognition in 2015 but markets are very fickle beasts and the magical levels above 2 look close to the end for the time being! A variety of factors have contributed to cause the pound to fall in recent weeks (mainly poor economic data) and the Australian dollar is once again an investors favourite. GBP weakness is easily explained by the recent less than tasty economic data released but the Aussie situation is a little more tricky to explain and understand.
As the Australian currency offer investors a higher interest rate than most other leading currencies (2% down under versus the UK at 0.5%, US at 0.25% and Eurozone a basically 0%) investors used the Australian currency and investments to earn higher returns. Investors have been borrowing in lower yielding currencies like the ones mentioned above and investing in the higher return Aussie to turn a profit. This transaction had been very profitable in recent years but the slowdown in China had led to the RBA (Reserve Bank of Australia) cutting their interest rate. This transaction therefore became very unattractive this summer (which is why GBPAUD went over 2.20) but more recently an extension of the Eurozone QE programme has led to it once again becoming an attarctive proposition to invest down under.
Therefore the Aussie is stronger and I feel the current trend has more to run. If you need to buy AUD I would suggest moving sooner rather than later to capitalise on the excellent levels on offer. Looking ahead if you need to buy or sell Aussies please email email@example.com for more information