In recent weeks the pound has been making gains against the Australian dollar and presently GBPAUD exchange rates are trading at a 10 week high! A 200,000 Australian dollar purchase is now £8,000 cheaper compare to 10 weeks ago.
The reason for the shift in sentiment is that the Australian dollar has weakened and the pound has strengthened.
Australian dollar weakness stems from Donald Trumps appointment as President-elect. Mr Trump has a rocky relationship with China and before the Election he stated the he wanted China to pay a fee to import into the states.
With an uncertain period ahead for the two leading nations commodity currencies including the Australian dollar that heavily rely on China have taken a hit.
The pound has strengthened in recent weeks, because a soft Brexit is becoming more likely. Brexit secretary David Davis has exclaimed that the UK could pay money to the EU which would keep the country within the single market once the UK leave the European Union.
Looking ahead I think the pound will continue to make gains against the Australian dollar in the upcoming weeks however Brexit negotiations throughout quarter one of next year could devalue the pound and therefore the gains we have seen for Australian dollar buyers over the last couple of months could diminish.
If you are needing to convert Sterling and Australian dollars in the upcoming months and want to achieve competitive rates of exchange whilst receiving regular economic information feel free to email me the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with the options available to you along with the process of converting currency. My direct email address is [email protected] and I look forward to receiving your email.