The Pound to Australian Dollar exchange rate can at times be heavily linked with what’s happening outside of the UK and Australia, as strange as that seems.
Recently we have seen quite a dramatic move in favour of the AUD, which has coincided with the weakening of the US Dollar. Investors are becoming more apprehensive regarding holding funds in the US Dollar, as both political issues surrounding North Korea and weak inflation have damaged sentiment towards the US Dollar.
The US Fed plans to hike interest rates three times this year, but if this doesn’t actually happen which is a possibly as current Fed Chair Janet Yellen is expected to be replaced in February, I would expect to see the US Dollar weaken which is what we’re already seeing as fears over US inflation levels dropping are dampening hopes of the rates hikes.
Also, at times of US Dollar weakness the financial markets generally gain a greater level of risk appetite. With the Aussie Dollar being a commodity based currency and currently offering one of the highest returns in the developed world it’s not unusual to see AUD boosted.
If you wish to be notified if there is a major move for the GBP/AUD pair, do feel free to get in touch with us as working on a dealing floor allows us to react immediately in order to help our clients.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.