Over the last 4 weeks the pound has made a 10 cent gain against the Australian dollar which means a 200,000 Australian dollar purchase is now £7,500 cheaper compared to this time last month.
UK Prime Minister Theresa May’s announcement to hold a snap election on June 8th has attributed to the pound gaining momentum, as the market believe the Conservative party will win a majority which in turn helps the PMs cause when negotiating Brexit with EU officials.
The Australian dollar has had a tough time in recent weeks as Chinese economy data has been far from positive which has a direct impact on the Australian dollar. This has forced the Reserve Bank of Australian to continue with low interest rates for the time being again leading to further Australian dollar weakness.
Looking ahead I don’t think Australian dollar buyers are going to continue to have it all their way. Past history tells us when a country has an election in the run up to that election (regardless if one party looks like a clear winner) the currency tends to devalue. Therefore Australian dollar buyers should continue to watch the market but be in the position ready to trade as I wouldn’t be surprised to see a fall in the weeks to come.
If you are trading GBPAUD this week, month or year I would recommend emailing me with the the reason for the transfer (company goods, property purchase) and your timescales and I will response with the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 Monday morning and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **