The pound has been suffering against all currencies in 2016, it is only against the Australian dollar that we have had some improvements. Current levels to buy Australian dollars are by no means the best rates we have had on offer in the last few months but do represent excellent historical value. To have deals comfortably above the attractive level of 1 GBP / 2 AUD should not be risked too easily in my opinion. There does now appear to be a strong likelihood that the pound will struggle in 2016 as there is the possibility of the UK leaving the European Union. The fears over this event have already led to sterling plummeting and I think it only a matter of time before this manifests further on GBPAUD exchange rates.
The Australian dollar is weaker because of the uncertainty surrounding China but these fears have largely been settled with small gains on Chinese stock markets today. The stock market is not as key an indicator of Chinese economic strength as many think. China depends largely on its strong Manufacturing base which has of course suffered lately but with economic growth representing levels of 6%, I don’t think it is really time to start worrying too much about Chinese decline.
For more information on the Australian dollar and the kind of exchange rates you might expect in the future please speak to me Jonathan on [email protected]