The AUD has found plenty of support around 1.77 against Sterling this week but has struggled to make much of an impact below this threshold.
Despite the on-going concerns surrounding Brexit, the Pound has held its position against the AUD better than it has against many of the other major currencies.
News earlier this week that Australia’s Gross Domestic Product (GDP) growth figure had slipped to 2.4% from 2.8%, will have dented investor confidence in the region. Australia’s economy is heavily reliant on the export of their raw materials, so any slowdown in global growth inevitably has a negative knock on effect for their economy.
Moving forward and there will also be concerns over President Donald Trump’s proposed tax tariffs on imported Steel & Aluminium. This could have serious knock on effects for the global economy and could even threaten a recession in the longer-term.
This in turn would likely to cause investors to flee currencies like the AUD, which are considered a riskier asset in times of global uncertainty.
Whilst market sentiment around the UK economy is still being driven by sentiment surrounding Brexit and with negotiations remaining tedious, it is unlikely the Pound will find any major support under current conditions.
Due to uncertainty on both sides, it is no surprise that GBP/AUD rates have remained largely range bound over the past few weeks, with the markets seemingly waiting for the next key development.
If you have an upcoming 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.