The GBP/AUD rate has moved up to a week high despite a volatile period for Sterling as the political scene takes centre stage. Brexit talks are dictating the movement for Sterling and any sudden good news could start to see the rate move above the 1.70 level.
Australian Economy Strengthening
Despite a slow start to the year, which revealed low Retail slows and Housing construction falling the Australian economy seems to be picking up. Most of the weak 1st Quarter GDP can be put down to poor weather on the East coast of Australia having an enormous consequence on consumer behaviour and construction conditions. However now that Australia is through the storm business conditions appear to be improving with confidence once again returning.
In the longer term what this could mean for the Aussie is continued strength. Australia earlier this year took the record from the Netherlands for the longest consecutive time of never falling into recession. This is no mean feat and despite external economic pressures weighing down on the economy the condition are positive. China and the general commodity market dictate how Australia fairs from a trade perspective and as the markets have settled so has the Aussie.
Aussie sellers are certainly in a positive predicament and are unlikely to see selling levels much below 1.65 in my opinion. However any upticks for Aussie buyers using Sterling should consider the low 1.70’s as a buying level. The market is currently poised to go either way and with the UK struggling with uncertainty anything could change.
If you do have a requirement to change currency I’m confident I would be able to help you execute a transfer. If you would like to discuss the forecast above please feel free to email me at [email protected]. Working for a currency brokerage I am able to set rate alerts to make sure you’re trading at the right time at a level you’re happy with.