Over the last three months GBPAUD exchange rates have fluctuated 8 1/2 cents which has given clients that are buying or selling Australian dollars opportunity. At present GBPAUD has broken through 1.75 and I expect the pound could continue to make further inroads against the Australian dollar.
This week Iron ore prices have showed a slight decline and today Iron Ore is 0.8% down. The Australian economy relies heavily on Iron Ore and Australian dollar exchange rates have a direct correlation. Many forecasters are split to whether Iron ore over time will rise or fall. Ultimately it all comes down to how much China buy throughout the year. For many years forecasters have suggested a slowdown for China is on the cards but they continue to produce the economic numbers.
Tomorrow morning the UK release key economic data releases in the form of average earning and unemployment rate. Unemployment remains at record lows which is fantastic for UK exchange rates, even though 0 hour contracts are included within these figures. However the average earnings numbers are the concern for the UK. Inflation is outpacing average earning and the UK public are feeling it. If this trend continues further pressure will put on the Bank of England and a change in monetary policy could occur.
Longer term Brexit negotiations will drive the price of GBPAUD. I personally believe that the UK will come to an agreement with the EU therefore a sustained period of 1.80 towards the end the year could be on the cards.
If you need to buy or sell Australian dollars and would like to save as much money as possible, feel free to email me with your requirements and I will respond with the process of using our company [email protected]. As a company we pride ourselves in the ability to get you a better exchange rate than your current currency provider or your bank. In addition we can outline your options and the potential future events, which will impact your exchange rate. This will help you to make informed and educated decisions.