After hitting above 1.80 earlier this month the rate to buy Australian Dollars with Pounds has fallen in to the 1.75 levels on the Interbank.
Primarily this was caused by the huge losses in the value of the Pound against a number of major currencies owing to the issues surrounding the proposed Brexit deal.
However, it was not just the news in the UK that caused the Pound to fall against the Australian Dollar.
During the course of this week the economy down under showed an improvement in the unemployment rate which fell to 5% and this caused investors to move money in to the AUD as it shows signs of a more positive economy.
The main news that caused the drop in the value of the Pound was the proposed Brexit deal. This caused a number of senior ministers to hand in their resignations including Brexit secretary Dominic Raab. He left citing differences in the deal and that he could not be part of the government owing to certain issues in the proposed deal which he could not agree upon.
Could the Brexit deal be changed?
Meanwhile this weekend a number of senior ministers in the Conservatives are planning to try and make changes to the draft Brexit deal.
Included in the group are Michael Gove and Liam Fox who have previously thrown their support behind Theresa May.
The Prime Minister has been busy trying to persuade the British public that she is determined to see this deal through.
The next stumbling block could come on 25th November when the EU summit takes place. The likelihood is that this is likely to get ratified but the real sticking point will come when the parliament has its say.
The current expectation is that the EU will approve the deal but that parliament will reject it and then the UK government will have 21 days to put forward a new plan and I think this will will increase the pressure on the value of the Pound.
Therefore, if you’re planning to buy Australian Dollars in the near future it may be worth getting this organised relatively quickly.
If you are thinking about making a currency transfer and would like to save money when transferring Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]