The Pound collapsed against a whole host of currencies including vs the Australian Dollar after a bad week politically for the UK.
The Pound began to drop on Thursday when the unofficial EU meeting didn’t go very well with a number of EU leaders rejecting the Chequers plan put out by Prime Minister Theresa May.
She criticised the EU and said if they reject her plan then they will need to come up with a plan of their own. Clearly there is no plan coming at least in the short term and this uncertainty caused problems for the Pound vs the Australian Dollar.
Even further losses came on Friday afternoon as Theresa May gave a statement on Brexit and confirmed that a second referendum will not be coming and that she is focused on making sure democracy will prevail. The markets weakened during the statement with GBAUD exchange rates falling below 1.80 after trading above this resistance level for a while.
The Australian Dollar was also given a boost after the Trump administration confirmed that they will not be putting tariffs on Australian steel and aluminium exports.
The Aussie Dollar has been under pressure recently caused by the Trade Wars between the US and China and as China is Australia’s largest trading partner this will often have a negative effect on the value of the Australian Dollar. However, as Trump has not included them in his latest weight throwing exercise this has helped the Australian Dollar to strengthen against Sterling.
The Australian economy had a further boost recently with credit ratings agency S&P upgrading Australia’s credit outlook from negative to stable for the first time in two years.
With the Australian trade surplus improving as well as record growth in employment this has been another reason for the fightback by the Australian Dollar vs Sterling.
As we go into next week the GBAUD is likely to be heavily influenced by the ongoing Brexit saga so make sure you’re well prepared for some volatility ahead for the Pound vs the Australian Dollar.
Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help you save money when buying or selling Australian Dollars as well as helping you with the timing of your currency transfer.
If you have a currency transfer to make or would like further information as to what is happening to GBPAUD rates then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]