The Pound has fallen against the Australian Dollar by almost ten cents since the turn of the year as the pressure on Sterling mounts.
Sterling has really struggled against all major currencies and as the price of iron ore has been rising recently this has seen the Australian Dollar strengthen against the Pound.
The Aussie Dollar is a commodity based currency and as such if the price of commodities rises, which in this case they have, then typically we see Australian Dollar strength vs Sterling.
With things seemingly going from bad to worse in the UK as the government eagerly anticipates the outcome of the Supreme Court ruling and Theresa May’s speech later today concerning her plans for Brexit if both go the wrong way we could see GBPAUD exchange rates fall below 1.60.
Theresa May has previously suggested that the UK may opt for a hard Brexit and if this is the case we could see problems ahead for Sterling against all major currencies including the Australian Dollar.
Although clearly the political impact will have more of an effect on Sterling vs the Australian Dollar we also see the release of economic data down under in the form of Unemployment data. The expectation is for 5.7% so any change could cause further volatility for the currency pair.
One option to consider if you need to buy currency in the weeks ahead and are worried about the ongoing uncertainty you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also help you with the timing of your transfer of funds.
If you need to buy or sell Australian Dollars and would like further information or for a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org