The pound to Australian dollar rate is looking like it might rise further in the future so for clients looking to sell AUD for pounds a quick move is probably sensible. With the levels now safely above 1.80 fr over a week the prospect for it to dip back below 1.80 seems unlikely. Overall the expectation for clients who will need to buy pounds with Aussies is that moving sooner will probably be best.
We learned this week that the pound should find more favour against the Australian dollar on the back of improved expectations relating to the prospect of interest rate rises. The GBPAUD rate was dealt a double whammy when the US raised interest rates but also confirmed extra buoyancy in future hikes which has kept the AUD weaker against both currencies.
We learned very recently that the RBA (Reserve Bank of Australia) will be looking less likely to raise interest rates in the future, this has seen the Australian currency weaker. Interest rates are a major barometer of what will happen to a currency in the future, the expectations that the US Federal Reserve and the Bank of England will raise interest rates ahead of the RBA is putting the Aussie on the back foot.
The next stages of progress will be made in the coming weeks, any surprise twists and turns on Brexit could unsettle the pound GBPAUD rate but the overall impression looks more positive. If you have a transfer buying or selling pounds and Australian dollars making plans ahead of any spike is the best course of action.
If you have a transfer and wish for some expert information and assistance on the currency markets, please don’t hesitate to get in touch with me directly on [email protected].
Thank you for reading and I look forward to hearing back from you.