GBPAUD exchange rates have been improving lately reaching some of the best rates to buy Australian dollars with pounds since the Referendum in June 2016. This is very good news for any clients looking to make an international transfer in the future as the last few months have generally been difficult for the pound. The good news may well continue further but with plenty of potential for the pound to struggle clients buying Australian dollars with pounds should I believe be thinking very carefully about what they are aiming for.
The Australian dollar has weakened as a consequence of a much stronger US dollar which is seeing investors transfer their holdings in Australian dollars through to the US dollar. With higher base interest rates than Australia the US dollar has become a much more attractive currency to hold and the previous arguments for holding onto the Australian dollar diminish.
The RBA (Reserve Bank of Australia) is likely to be very much on course to be raising interest rates down the line but with the UK and also the US likely to be raising interest rates before the RBA, the prospect for the Aussie to weaken further seems high. Expectations for the GBPAUD rate are in my opinion that it will rise further so if you are looking for any transfers in the future and wish for updates on what is likely to happen, please contact myself, Jonathan Watson, directly.
Please email [email protected] for more information and thank you for getting in touch.