GBP/AUD rates received a welcome boost with the pair gaining roughly 10 cents over the past month. This is a fantastic opportunity for those clients holding Sterling, considering how much pressure the UK economy is under at present. This pressure has been mounting for some time and with June’s EU referendum causing so much uncertainty, the fact an opportunity such as this has presented itself is even more surprising. The Pound has taken a hit against most of the majors but due to an equal amount of negative press and market uncertainty, the AUD has struggled to hold its position.
The Pound started to build momentum following the Reserve Bank of Australia’s (RBA) decision to cut their base interest rate to a record low of 1.75%. They left themselves open to further cuts if necessary and with the well documents economic problems in China also sapping investor confidence, the AUD is struggling to find a foothold under current market conditions.
In some ways it is somewhat fortunate for those clients holding AUD that the Pound has its own problems, otherwise I believe we would already have seen GBP/AUD rates move above 2. Just to put it in context the improvements seen over the past few weeks would equate to an extra 20,000 AUD on a £200,000 GBP/AUD currency exchange. Considering the potential pitfalls ahead for the UK, I would be extremely tempted to take advantage of the current spike ahead of further uncertainty for the UK as the upcoming EU referendum draws closer.
If you have an upcoming GBP or AUD currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478. Alternatively, I can be emailed directly on [email protected]