Sterling’s positive run continued throughout Wednesday’s trading, moving back above 1.76 against the AUD.
The Pound has been well supported across the board, bringing with it some much needed optimism ahead of the next round of Brexit talks.
The AUD has found it difficult to make any real impact, with the Pound now likely to find plenty of support between 1.70-1.75.
Whilst the current rates may still not look overly attractive based on historical levels, the Pound has certainly seemed to gain something of a foothold over recent weeks. We must continually remind ourselves that the goals posts have shifted since the Brexit decision. As a result I feel that the current spike offers some value to those clients looking to exchange GBP/AUD positions.
This week’s positive move is even more surprising when you consider how poor the UK Retail Sales figures were on Friday and clients have been asking what the catalyst was behind this positive spike.
Whilst it’s impossible to give a universal answer, the upturn at least in some part could be attributed, at least in some part, due to a report by the former Conservative Treasury minister Lord Jim O’Neill.
Despite being a vigorous Remain campaigner, he argued that Britain “should prepare for a much more economically optimistically 2018”, citing better than predicated global growth as the reason.
He believes that Britain’s growth forecasts will be upgraded, due to China, the US and Europe showing increased economic activity.
Whilst this view is unlikely to be shared by all, the Pound seems to have benefited as a result.
Looking at the Australian economy and early year financial reports have indicated that the Australian economy is set to continue to grow in 2018. If this prediction comes to fruition it will be Australia’s 27th year of uninterrupted growth.
This in itself is an impressive statistic, especially when you consider there have been at least three major global recessions during this period.
Whilst the Australian economy is of course not impenetrable, it continues to benefit from high levels of skilled immigration and a booming mining industry, which helps to support their continued growth.
If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.