The pound made considerable gains against the Australian dollar throughout September due to the Bank of England’s stance surrounding future interest rates and the dovish stance from the Reserve Bank of Australia.
Governor of the Bank of England Mark Carney announced that an interest rate hike could occur as early as November and currency speculators have purchased the pound in anticipation.
Governor of the Reserve Bank of Australian Philip Lowe confirmed that an interest rate hike anytime soon is unlikely as they do not want to see household debt rise further.
In other news iron ore prices in Austrian have been taking a tumble in recent weeks. Iron ore is Australia’s largest export and when iron ore prices fall this tends to mean the Austrian dollar follows suit. If iron ore continues to decline I expect buying Austrian dollars will become cheaper in the upcoming weeks.
Another factor that will have a major impact on GBPAUD exchange rates is Brexit developments. Currently Brexit negotiations have stalled once again as UK and EU negotiations cannot come to an agreement in regard to the divorce settlement or EU citizens rights once the UK depart the EU. This could be a story that has a positive or negative impact on the pound.
If you are buying or selling Australian dollar in the upcoming weeks, months or years feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company [email protected].
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **