The political uncertainty surrounding the UK economy reached new peaks last Friday with the announcement of a Brexit vote, causing AUD buying rates to tumble back to levels last seen in April.
The Pound not only lost a considerable amount of its value, but the Australian Dollar benefited hugely from the result. When more stable currencies such as the Pound are showing signs of serious deterioration, then more volatile currencies with higher yields, such as the Aussie, become a more attractive prospect to investors.
With an interest rate four times higher than that of the UK (and maybe more with indications that Mark Carney may be cutting UK interest rates next month) demand for the Australian Dollar has risen parallel to the lost enthusiasm in the Pound.
But these gains have been tempered. The Australian Dollar itself has been coming under pressure with elections in Australia just around the corner. With this in mind, and the close race forecasted, Australian Dollar buyers may be seeing some more impressive buying rates over the next week or so, depending, in the run up to, and the aftermath of the election.
At the same time the situation in the UK will be evolving. David Cameron has come back from Brussels after discussions over there, a leadership is about to ensue for both parties, as well as talks of a potential snap-election in October.
Whilst uncertainty on the Australian side of GBP/AUD exchange rates is evident now, this uncertainty that puts the Pound under a questionable light will be in the background for a matter of months and years.
Anyone considering buying Australian Dollars may be seeing some of the better rates over the coming months within the next week or so. I strongly recommend that those with a buying requirement should contact me on [email protected] to discuss a strategy for your transfer to make the most of any of the expected peaks within this period.
I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels will be fixed in place for anyone requiring Australian Dollars later in the year – effectively pre-booking your currency.
Australian Dollar sellers can also get in contact to discuss the options open to you using a specialist currency exchange brokerage in order to make the most of these recent moves in your favour.