The Pound to the Australian Dollar has fallen during the course of the week after the Reserve Bank of Australia confirmed that they will be keeping interest rates on hold. This was compounded with the Statement released at the end of the week as it appears as if any interest rate change is off the agenda for the time being.
This has seen the Australian Dollar strengthen vs the Pound providing some good opportunities to take advantage of when converting Australian Dollars into Sterling.
The price of iron ore has been rising recently and this was reflected in the recent Commodity Index and this has also helped the Aussie Dollar.
Even though the investment in the mining industry has decreased over the last 5 years the value of commodities has been rising and Chinese demand continues.
The Pound is also being negatively affected by what is happening in the UK politically with the never ending saga of Brexit and the uncertainty of what may happen once Article 50 is triggered.
At the moment there is no clear path ahead and this is why Sterling has continued to suffer against the Australian Dollar and I think we could even see GBPAUD rates drop below 1.60 at some point this month.
My reasoning is that UK economic data has generally been quite strong highlighted by yesterday’s GDP figures.
Typically this would strengthen the Pound vs the Australian Dollar but with GBPAUD rates falling yesterday it seems clear that it is the political uncertainty that is causing Sterling’s demise.
Therefore, if you need to buy Australian Dollars it may be worth organising this soon as with Article 50 likely to be triggered next month this could cause all sorts of problems for Sterling.
If you don’t have the full availability of the funds you may wish to buy a forward contract which allows you to fix an exchange rate for a future date.
To find out more or for a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you. Please outline your particular requirement and the timescale involved and I’ll respond with my suggestions.
Tom Holian [email protected]