Sterling vs the Australian Dollar is now at its lowest level in over 2 months as the Brexit issue continues to negatively affect the value of the Pound against all major currencies.
Our Prime Minister Theresa May has still yet to confirm whether the UK will choose to follow a soft or a hard Brexit and this is what is causing the ongoing problems for Sterling exchange rates against the Australian Dollar.
Until we have a clearer indication as to which route the UK will choose this is likely to keep Sterling under pressure.
With Theresa May due to address the markets on Tuesday we could see some volatility for GBPAUD exchange rates depending on what she has to say.
The issue is that if we opt for a hard Brexit this means removing ourselves from the single market which is what has caused the demise in Sterling in recent weeks and months.
Indeed, since June when the vote to leave the European Union took place we have seen losses of over 40 cents for GBPAUD exchange rates.
The price of iron ore has risen recently which has also helped to strengthen the Australian Dollar vs Sterling.
As the AUD is a commodity based currency any increase in the value of commodities or raw materials helps to strengthen the Australian Dollar vs Sterling.
With the Supreme Court judgement due shortly I think this could help the situation as it will allow the Prime Minister to provide a clearer future for the UK but until then Sterling is likely to remain under pressure.
In the short term I expect the Pound to continue to struggle against the Australian Dollar so if you need to send money down under in the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.
To find out more or if you’d like a free quote when buying or selling currency then feel free to contact me directly and I look forward to hearing from you.
Tom Holian [email protected]