The pound has been performing much better against most currencies lately including the Australian dollar. The GBPAUD price has recently been hitting the best time since the Referendum vote to buy AUD with pounds. However in the last week a much stronger Aussie has seen the rate drop to the 1.73’s presenting a fresh opportunity for AUD sellers looking to buy pounds. If you need to buy or sell AUD then getting your timing and the price right can save you thousands.
A much better employment report for Australia has helped the currency to rise as it makes the likelihood of any interest hike down the line more likely. The Aussie had actually been much weaker lately, in part due to speculation that the RBA (Reserve Bank of Australia) would keep their base rate on hold for longer. The latest Unemployment news from Australia was much improved with lots of news jobs being created and participation rates increasing.
The Aussie is strong against the pound too because of fresh uncertainty over what lies ahead with the Brexit deals and we can be expected in 2018. We might have secured a deal so far for the more short term and pressing issues, but there is still a long way to go in order to see Brexit fully in full swing. This may take years and the recent improvement in the outlook for the pound, whilst welcome, can surely not be here to stay?
Next week is some further key economic data which could easily trigger market movements, overall I expect markets to be trading on political developments with Brexit. Since it is also holiday season thinner trading volumes in the market could create some extra opportunity!
If you have a transfer to make and wish to get the best rates and latest news, please speak to me Jonathan by emailing [email protected]