The pound remains under pressure against the Australian dollar although it has found a degree of support in recent days. New concerns over a hard Brexit have seen the pound tumble lower across all of the major currencies in recent weeks and it should be some time before any real clarity is offered by the British government.
The earliest that Article 50 will be invoked will be at the start of 2017 which leaves anyone holding sterling in a period of limbo.
The Australian dollar is continuing to perform well and received a boost following the US presidential election TV debates. The US dollar has been supported following an apparent win by Hilary Clinton which in turn has helped boost the Australian dollar. In the event of a Trump win then this would likely result in Aussie weakness due to a less certain economic outlook although in my view Hilary Clinton should take victory.
Anyone holding Australian dollars looking to sell would be wise to look at securing funds sooner rather than later to try and maximise on the excellent rates we are seeing at the moment. There may be some better rates around the corner for AUD GBP largely as a result of Brexit.
Data is light for Australia as we end the week with new home sales on Friday as well as Business Confidence numbers. UK GDP numbers are released on Friday for the second quarter and anything negative here could slide further against the Aussie dollar. The markets are ready to point the finger of blame for any negative data firmly at Brexit
Clients who are buying or selling Australian dollars are seeing a very volatile period at the moment which is unlikely to change any time soon. If you have an upcoming currency requirement for buying Australian dollars the persistent Brexit worries are likely to see the pound weaken further against the Aussie.
If you 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 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]