GBP AUD exchange rates remain under pressure largely as a result of Brexit uncertainty in the UK which is keeping pressure on the pound. At the same time a buoyant Australian economy and an overheating housing market down under are helping keeping the Australian dollar supported. The Reserve Bank of Australia finds itself unable to lower interest rates and risk overcooking the economy. If anything the next move will be up and this is helping support the dollar.
Brexit Update – GBP AUD
Those clients with a pending requirement to either buy Australian dollars or sell Australian dollars would be wise to be kept in the loop with Brexit developments here in the UK. Brexit is the single biggest driver for GBP AUD right now and the weakness in the pound still presents those clients who are selling Australian dollars with an excellent opportunity to convert. If you have a transfer to make whether it be from a property purchase / sale or other investment then please get in touch to see how we can assist. Timing is everything in these markets.
A big day for the currency markets is looming when UK Prime Minister Theresa May is expected to give a speech around the 21st September which is likely to centre on Brexit and new details are likely to be offered. The last time she gave a speech like this was back in January this year at Lancaster House and the pound rocketed almost 2% immediately after.
My view is that this will be a very well crafted speech and the markets will probably receive it very well with gains to be expected for the pound, especially if history repeats itself.
Those clients with a requirement to sell dollars would be wise to consider moving ahead of this speech which will take place in around two weeks’ time, no date has officially been confirmed.
Those clients looking to buy Australian dollars with pounds would be wise to position themselves ready with funds available and in place so if there is a good jump higher we can lock in the rate at the higher levels. Please email me if you would like to discuss and to take a closer look at your potential requirement.
Meanwhile the Great Repeal Bill is being debated in the House of Commons and will be voted on early next week. Any holds up could see GBP AUD weaken in the short term although the bill is widely expected to go through without a hitch. I am not expecting problems here.
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]