The pound has fallen lower against the Australian dollar and all of the other major currencies today with a low of 1.6231 seen earlier today for GBP AUD. The Australian dollar has been boosted this week following better than expected construction and building approvals for June highlighting the construction and housing sectors are performing robustly and boding well for the dollar. The Australian dollar could also see added benefit if the price of oil and other commodities continues to rise.
Today’s fall for GBP AUD can largely be attributed to the third round of Brexit negotiations which were concluded today. The tone was less than impressive with no real progress on both the exit bill and potential future trade deal and an awkward press conference between Brexit Secretary David Davis and his counterpart Michel Barnier . The pound is now likely to remain under considerable pressure as the markets now have to wait for a fourth round of discussions later in September whilst this game of bluff continues. The ongoing Brexit continues to be the major driving force for sterling exchange rates and until real clarity is offered then it is difficult to see much improvement for GBP AUD.
For those clients looking to sell Australian dollars in the coming weeks or months then now would be a sensible tm to make contact to look at the options available to you. There may be some more sterling weakness if Brexit negotiations recommence badly in a couple of weeks. A well-timed forward contract will allow you to lock in the rate of exchange at the right time and take the risk out of the volatile currency markets.
Data is light tomorrow with just a commodity index report measuring export prices so eyes now keenly await next Tuesdays Reserve Bank of Australia interest rate decision. Any suggestion of a change in montery policy or perhaps more likely some jawboning are likely to have a material change on the dollar.
If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]