The rate to buy Australian Dollars with Sterling has hit its lowest level since October 2013 as the fall out from the Brexit continues to influence exchange rates.
Sterling was trading above 2 only just less than a month ago and since then GBPAUD rates have dropped by over 30 cents.
Politically the UK is an a mess since the Brexit vote with Prime Minister David Cameron having announced his resignation which is due to take place in October.
The main protagonists behind the Leave campaign Boris Johnson and Nigel Farage have both stood down since the vote and with the Tories still yet to elect a leader between Teresa May and Andrea Leadsom politically the UK is under a lot of pressure.
With the uncertainty this has caused a real lack of confidence in Pound Sterling vs all major currencies including against the Australian Dollar.
Bank of England governor Mark Carney has suggested that an interest rate cut or further Quantitative Easing may be coming and with next week’s meeting due to take place on Thursday any sign of an interest rate cut could see further Sterling weakness vs the Australian Dollar. If no change takes place then we could see Sterling make some small gains.
Down under we still do not know who will taking the country forward and with a hung parliament still not sorted typically this would have weakened the Australian Dollar against Sterling.
Therefore, it is quite obvious that Sterling is struggling and until political and economic certainty returns then we could see the Pound really struggle to make gains against the Australian Dollar.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian email@example.com
I look forward to hearing from you.