The pound has seen a rapid turnaround against the Australian dollar moving almost 10 cents higher over the last week. For anyone selling Australian dollars the rates are still attractive but we have now lost that real edge seen over the last fortnight. The price of oil has suddenly risen to a 5 month high which has had an impact on the Australian dollar. As the price of oil rises it highlights an improved global economic outlook and the Aussie is one currency that fares better when the global economy is performing. Higher oil prices will also filter into higher inflation in the UK which is turn will become positive for sterling. I wouldn’t expect this higher oil price to be permanent however and there have been big fluctuations in the oil price over the last few months. This is not the start of a global boom!
On the sterling side of things the perceived increased likelihood that Britain will remain in the EU following a number of economic forecasts by some credible bodies and the pressure from US president Barack Obama after his recent trip has clearly had an impact on sterling which has seen strong gains across all of the major currencies. For anyone buying Australian dollars or any other currency this has created an excellent opportunity although that rally may well now be running out of steam.
Considerable more headwinds are expected in the UK as the vote Leave campaign gathers momentum so buyers may wish to take advantage of the sharp spike whilst it is still there. There are a handful of data release tomorrow in Australia ahead of the Bank Holiday weekend in the UK including business confidence figures and producer inflation numbers which may add some direction.
If you have an upcoming GBP or AUD currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at [email protected]