Why is the Australian Dollar weakening against the Pound, and will it continue? (Joseph Wright)

A Good Start to the Week for AUDGBP

The Pound is trading at it’s 2017 high against multiple major currencies at the moment, with the Pound to Australian Dollar sitting at an 8-month high making the conversion of Pounds into Aussie Dollars a much more attractive proposition than it was for much of last year (after the Brexit vote).

The Pound has been slowly climbing since UK PM, Theresa May announced a snap election in June, and as the conservatives gain a more favourable position within the polls we’re seeing the value of sterling continue to climb.

At the same time the commodity currencies such as the Aussie Dollar have been struggling, as commodity prices have tumbled recently which is likely to have a knock on effect to the Aussie Dollars value as the Australian economy is negatively impacted as a result.

Just last week the price of Oil, Iron Ore and Copper all fell by 7% along with Gold which fell by 3%.

Tomorrow is likely to be a busy day for the GBP/AUD pair as a number of key data releases are due out. UK Interest Rates will be announced along with Inflation data and UK GDP, so there could be some major moves tomorrow. Feel free to get in touch if you wish to be kept updated regarding these releases.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.