The Pound is proving resilient in the current market, and despite posting losses towards the end of last week after some less than impressive economic data releases the Pound is remaining strong.
Last Friday data revealed a decline in UK industrial/manufacturing production, and it was also announced that the UK’s trade deficit has expanded. Despite this the Pound is still holding onto the gains its made since the Brexit officially begun and for those planning on making a GBP to AUD transfer, it’s worth noting that the Pound is up 7 cents from its lowest point throughout 2017.
The Pound to Aussie Dollar rate has also been boosted due to AUD weakness as the action taken by Donald Trump in Syria has resulted in risk averse markets, and look no further than the boosts to golds value to confirm this. Commodity currencies tend to weaken in times of risk aversion and the Aussies recent moves have left the currency trading at a three-month low against the US Dollar.
There is also the issue of the housing market in Australia overheating and this issue keeps hitting the headlines.
There’s an argument to suggest that a weaker currency is a benefit for Australia’s export driven economy so I wouldn’t rule out a move from the Reserve Bank of Australia in order to weaken the currency further in order to keep the economy competitive.
Moving forward I’m expecting to see the Pound recover more ground from AUD after the initial drop after the Brexit vote. Those converting Aussie Dollars into Pounds are still in a great position after that drop, but the gains are slipping away as GBP/AUD recovers back to levels closer to 1.70 than 1.60.
If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.