GBP/AUD rates of exchange have been testing the very low 2.0’s last week until Australain Dollar buyers were gifted with some positive news to end the almast unabated string of negative headlines.
The new piece of information that AUD buyers can be thankful for is the fantastic decrease in Public Sector Net Borrowing figures released on Friday.
Sterling had a very bad image on the markets when public sector net borrowing figures came in at about £12bn in December. Combined with the effects of the flooding on the public purse, Sterling seemed like a currency weighed down by a sudden outpour of debt at the end of last year.
Yet in January, this borrowing figure had almost halved. It seems some tough choices were made at Downing Street and Sterling has recovered some of its recent losses.
However, the consensus is that their is still more risk than opportunity in the markets for Australain Dollar buyers.
Sterling’s severe negative slide since December – (down by 12 cents against the Euro, and 8 against the US Dollar) has been down to three major factors, all of which are still present and will continue to form an anchor on the value of the Pound:
- Fears of a looming Brexit are creating a negative atmosphere around the Pound similar to what was seen for the Scottish Referendum in 2014.
- Mark Carney, the Governor of the Bank of England, last week restated that we will not likely see any interest rate rises in the UK economy until 2017
- The effects of the flooding are not contained simply to infrastructure damage: economic output has already shown to have slowed in December, and when the figures for January are tallied and released in February, we can expect similar results.
By contrast, the recent shock news coming out of China has started to fall out of the headlines and global stockmarkets are starting to recovery once more. Now the Australian Dollar is beginning to enjoy its seasonally strong position as the Australain economy benefits from its high-tourist season.
I strongly recommend that anyone with Australain Dollars to buy should contact me on [email protected] to discuss a strategy for your transfer in order to maximise your Australain Dollar return.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels for the Australian Dollar can be fixed with a small deposit to avoid any harmful movements against your favour making your purchase more expensive.