GBP/AUD rates have remained fairly flat during Thursday’s trading, with the pair floating around 1.62.
The AUD has performed well this week against Sterling ,as pressure continues to build on Sterling ahead of the UK’s upcoming Brexit and the triggering of Article 50 later this month.
Much of this week’s focus has been on yesterday’s UK budget and as expected the new Chancellor was bullish in his address.
Despite the outcome being underwhelming for those clients holding the Pound, there were positive noises being made regarding future growth forecasts for 2017, which were raised form 1.4% to 2%.
There is also on-going talk of a Brexit ‘pot’ being put aside to help alleviate pressure on the UK economy, following the triggering of Article 50. This is still on course to be actioned this month, despite some speed bumps being put down by the House of Lords. Whilst there was talk of up to 60bn being put aside as a safety net no official figures have been confirmed and as such it will be interesting to note how this story develops as it could have a significant impact on Sterling’s value.
As it stands the Pound is still struggling to make any significant inroads against the AUD, which is still threatening to make a move towards 1.60. This level will be hard to breach and is likely to provide some resistance for Sterling but there is no doubt the UK economy remains fragile in investors’ minds and the AUD is benefiting as a result.
The current market remains unpredictable at best and with global investor confidence fragile, commodity based currencies such as the AUD are always at risk. This always leaves them open to risk as they are reliant on global growth, in Australia’s case particularly the export of their raw materials to China. Therefore any slowdown in this sector will always hit their economy hard and the AUD will inevitably suffer as a result.
For this reason I have been advocating that my clients look for short-term spikes rather than hold out for sustainable gains in such uncertain and volatile times.
If you have an upcoming GBP or AUD currency transfer to make, then we can help you navigate this turbulent market by keeping clients up to speed with all the latest developments regarding Brexit and beyond.
If you would like us to monitor the market for you ahead of a currency exchange, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt.
Alternatively, I can be emailed directly on [email protected].