Most analysts are closely watching the GBPAUD exchange rate signs that the recent trend is likely to continue. GBPAUD has been on a slide since the beginning of the year as investors fears over the Brexit triggered sterling losses, whilst the pound has recovered since then the Aussie has too making headway against many currencies. A higher interest rate and rising commodity prices are all portraying an economy that is likely to benefit further from global conditions. If you need to buy Australian dollars with pounds taking advantage of the recent improvements is probably a good bet since the outlook looks like it may favour the Aussie over the pound.
Most investors have been carefully tracking the market looking for clues as to what might happen next for GBPAUD, having enjoyed levels above 1.70 all was not looking too bad. The recent confirmation that the RBA will not be looking at further interest rate cuts has however piled the pressure on the rate pushing GBPAUD back towards 1.60 as investors prefer to throw their funds behind the much higher yielding Aussie versus the pound. Sterling is likely to suffer as investors hesitate ahead of the Article 50 decisions next month. Most clients are looking for improvements if they have to buy Australian dollars with pounds but with the likelihood of GBPAUD slipping, I would not be getting overly excited.
Next week is an important one for the rates as we have a whole new host of economic data to be released which will more than likely lead to volatility across the board. GBPAUD seems bound to remain in a range of 1.60-1.63 with a real downside risk to rates falling below 1.60 over the course of March. We warned you last year when we were at 1.70 the rate was likely to deteriorate and I would like to gently warn clients buying AUD now that there remains a strong chance the Aussie will remain very strong against the pound.
If you have a transfer to consider please feel free to speak to me Jonathan Watson by emailing email@example.com about the latest forecast and the best rates of exchange.