The pound has made good gains against the Australian dollar this with rates for the GBP AUD pair back over 1.85. Rates for GBP AUD have now broken above a two year high creating a good opportunity for those looking to buy Australian dollars. The pound is receiving some mixed signals on Brexit although the general consensus is that a deal is within sight.
The EU are expected to offer the UK a proposal which should allow for much of the Chequers proposal being championed by Prime Minister Theresa May. It has been reported that something around 30-40% of her proposals will be granted in a deal but the stumbling block of the Irish border appears to remain. A new stumbling block has appeared in the form of the political declaration that will be made with the withdrawal agreement. Theresa May is asking for a precise agreement on frictionless trade, something the EU is reluctant to agree to. Expect considerable market volatility and opportunity as new developments unfold over Brexit.
The Australian dollar has had some of its confidence dented this week as events in China give cause for concern for global growth. The Peoples Bank of China has intervened to try and stimulate growth in China by lowering finance costs which should encourage growth. The markets are taking this as a sign that China is noticeably concerned about the prospect of a slowdown in China which is seeing funds move out of the Australian dollar. There has been a clear flight to safety away from emerging markets back to the safety of the dollar which could see further falls in the Australian dollar if the trend continues.
For more information on Australian dollar exchange rates and for assistance in timing your exchange at the best exchange rates then please feel free to contact me James at [email protected]