If you’ve been reading the articles on this site for quite some time you’ll realise that one of the biggest influences on the strength or weakness of the Australian Dollar is the relationship between the Australian and Chinese economy.
Chinese economic data has been rather mixed in recent weeks which has caused part of the weakness for the AUD vs the Pound but a slowdown in the US has also caused problems for a lot of the commodity based currencies.
The US has suggested that although there is room for an interest rate hike it will be some time before this happens so this highlights that the US economy may not be performing as well as previously thought.
With a slowdown in the US this has caused the Pound to make big gains over the last few weeks vs the Australian Dollar and the difference of £7,500 on a currency transfer of AUD$200,00 over the last month alone.
With the RBA earlier this week confirming that interest rates will be left on hold for the 9th month in a row this has also cause the AUD to weaken vs the Pound.
All in all this is good news for the Pound vs the AUD.
The UK election campaign is now in full swing and at the moment the Conservatives are winning a huge amount of seats.
With the general election due to take place on 8th June I think this will provide further support for the Pound in the weeks ahead so keep a close eye on the election campaign which is likely to provide volatility during this month.
If you would like to compare rates vs your own bank then contact me directly for a free quote and I look forward to hearing from you. A quick email could save you a lot of money when buying or selling Australian Dollars.
Tom Holian [email protected]