The Pound vs the Australian Dollar has now hit its best level in over two years as the Brexit talks appear to be gathering pace.
At the time of writing GBPAUD exchange rates have hit 1.85+ which is the best level since the day of the Brexit vote back in June 2016.
According to a number of different sources the Irish border issue appears to be getting closer to being resolved and we are just less than two weeks away from the EU summit due to take place on October 18th.
The main topic will clearly be what happens with the ongoing Brexit talks and with the Head of the EU Commission Jean-Claude Juncker suggesting that if a deal is not reached this month it could be concluded next month the Pound has made some huge gains against a number of major currencies including the Australian Dollar which is great news for anyone looking to send money to Australia.
Meanwhile, with the US Federal Reserve having increased interest rates to 2.25% recently the disparity between what is available in terms of interest in Australia compared to that of the US now stands at 0.75% which is the biggest difference since the Australian Dollar was launched over thirty years ago.
In recent years the Australian Dollar has been the benefactor of higher interest rates compared to that available in many other western economies but with interest rates now higher in the US and also showing US GDP at 4% then global investors appear to be bypassing the Australian Dollar at the moment.
Indeed, the ongoing Trade Wars between the US and China do not appear to be slowing down and as China is Australia’s biggest trading partner any negative news will often affect the Australian Dollar and this is another reason for the GBPAUD exchange rate moving in an upwards direction at the moment.
I think a deal is fairly close to being agreed at the moment and if and when this happens I think it will provide the UK with some certainty going forward allowing the economy to know what to expect and I think this is why we could see GBPAUD exchange rates continue to go up if the talks progress positively in the next fortnight.
If you have a currency transfer to make and would like to save money when converting Australian Dollars compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident that I can also help you with the timing of your transfer.
Email me directly Tom Holian [email protected]