The pound to Australian dollar exchange rates has been improving overnight as the Australian dollar suffers regarding some slightly worse than expected Chinese economic data. The Aussie has been on the backfoot in recent weeks as investors lose faith in the currency and find better returns elsewhere.
If you have a transfer to make in the future buying Australian dollars then the outlook is looking better as the expectation for the Aussie is that it will continue to weaken in the future. Markets are bracing themselves for a continuing deterioration of the Australian dollar as the US dollar becomes a more attractive currency to hold.
US interest rates rate have been rising which is making it very attractive to hold, investors would rather hold the US dollar than the Aussie at the moment as it is seen as a safer and less risky currency to hold. The Reserve Bank of Australia (RBA) are in a process of holding off making any decisions on interest rates which has seen the currency weaker. The UK too are in a process of raising interest rates which is leading to much-improved levels for the pound.
Essentially the pound and the US dollar are being made to be more attractive to hold than the Australian dollar which has seen the GBPAUD rates rising. They may well improve further in the future, we will have to wait and see exactly what happens with various factors globally, not just concerns in the UK and Australia.
If you have a transfer to make in the future understanding the market and all of your options in advance is key to getting the best rates of exchange. Part of our service is to assist clients with the timing and execution of any currency exchanges, please contact me personally if there is anything you wish to run through or discuss in the future.
Thank you for reading and please email [email protected] to discuss further.