The pound continues to maintain the higher ground against the Australian dollar whilst sterling is falling this morning against most of the other major currencies. Rates for GBP AUD are currently sitting just below 1.84 for the pair but the positive rally appears now to be coming to an end. At present there is an excellent opportunity to buy Australian dollars with pounds and clients may wish to consider securing sooner rather than later to avoid potential disappointment. Sterling Is beginning to fall sharply against most of the other major currencies in a sign of what may now be about to happen against the Australian dollar.
The pound has been given an excellent boost over the last week after Britain and the EU were able to agree on a transitional deal which keeps Britain abiding by EU rules for another 18 months to avoid the so called cliff edge Brexit. This is important for sterling exchange rates as the agreement gives business some certainty which the markets have been screaming out for. This latest Brexit agreement combined with the trade policy adjustments coming out of the Trump administration have helped see the GBP AUD pair soar.
Donald Trump has made two recent interventions where tariffs on Chinese exports have been introduced. The first was the imposition of tariffs on both steel and aluminium and more recently he introduced tariffs on some imported goods. This has wider implications and the Australian dollar is likely to see market volatility on the back of any further policy changes coming from the US.
These changes have wider implications and the Australian dollar is one currency that is disproportionately impacted. The prospect of a trade war has implications for the Aussie especially considering the size of Australia’s export market to China and the fact that China at present is being heavily targeted by the US with these trade barriers.
For more information on Australian dollar exchanges rates and how to try and make the most of any opportunities in the markets then please get in touch with me at [email protected]