GBP/AUD rates have dipped below 2.0 for the first time since June 2015, and as European markets close this slide isn’t showing much sign of abating.
The news is a continuation of what has been causing the fall on Australian Dollar buying rates since January, poor news about the UK economy, and surprisingly positive improvements over in Australia.
The UK has been slowing, this was first seen in December and became exaggerated in January. The causes for this are due to the recent flooding, low oil prices, slowing global demand, and panics on global financial markets.
With the engine room of the British economy being the financial services sector, the final point is what has caused the most serious drops in Sterling’s value against the Australian Dollar over the past 8 trading days – expected revenues from the City of London for 2016 are being revised downwards sharply.
At the same time, to the dismay of Australian Dollar buyers, the Australian economy is turning around from serious concerns brought about in August. Since then Australia has reduced its reliance on a flagging China as a customer for their exports, growth and employment prospects have improved, and the most recent meeting of the Reserve Bank of Australia showed confidence in how last year financial stimulus measures had benefited the economy.
More confidence in the Australian Dollar has helped slightly, but the main contributor to this drastic fall is a deterioration of the current economic climate in the UK. The conditions which are pulling the floor from under the Pound’s value are also deemed medium to long-term factors.
George Osborne himself stated that 2016 would be the most difficult year for the British economy since the recession, with the global downturn weighing heavily on UK growth in particular (there’s no revenue in financial services without growth). With this in mind I fully expect further falls for the Pound against the Australian Dollar as we edge further into the year, particularly with a potential Brexit on the horizon.
I strongly recommend that anyone with Australian Dollars to buy on the horizon should contact me overnight on [email protected] and I will respond personally to discuss a strategy with you to maximise your Australian Dollar return.
I have never had an issue beating the rates of exchange offered elsewhere, and these current levels for buying Australian Dollars can actually be fixed in place for up to a year if you wish to avoid any further falls affecting your transfer.
Anyone selling Australian Dollars for Pounds can do the same and I can explain how best to safely ride these movements in your favour to their peak within the time limit you have to complete your transfer. 01494 787 478