The Pound has continued to improve against the Australian Dollar creating the best level to buy Australian Dollars with Pounds since April which is a 5 month high.
The Australian Dollar has weakened owing to the ongoing threat of a trade war between the US and China and as China is such a large trading partner with Australia this is causing the Australian Dollar to weaken.
We also saw an improvement for Sterling during yesterday afternoon’s trading session following the comments made by EU Chief Brexit Negotiator Michel Barnier who suggested that a deal could be in place in the next 6-8 weeks.
However, as we saw what happened last week with GBPAUD exchange rates the comments sent the market up quickly but it then fell shortly afterwards.
Ultimately, the rate to buy Australian Dollars with Sterling is likely to be dominated in the next few weeks with the ongoing Brexit talks but the Trade Wars between the US and China are also causing big problems for the Australian Dollar.
Indeed, the US has threatened to impose further tariffs and have claimed they are ready to go and with China suggesting they may try to match the tariffs Dollar for Dollar this is clearly a big problem for global markets.
We have already seen the Pound make some huge gains vs a number of different commodity based currencies including the New Zealand Dollar and the South African Rand and with the Pound hitting 1.83+ against the AUD yesterday I think we could see further gains coming in the short term.
We have a big day coming on Thursday with Australia releasing the latest set of unemployment down under and this will be followed at midday by the latest Bank of England interest rate decision so be prepared for a volatile end to the week if you’re in the process of making a transfer involving Australian Dollars.
If you would like to save money when converting Australian Dollars compared to using your own bank then contact me directly for further information or a free quote and I look forward to hearing from you.
Tom Holian [email protected]