The Pound is now trading at its best rate to buy Australian Dollars since October with the Interbank level touching above 1.85 for a brief period of time earlier on this morning.
During this week we have seen GBPAUD exchange rates improve by as much as 5 cents or the difference of £1,600 on a currency transfer of AUD$100,000 highlighting the importance of keeping up to date with what is happening on the foreign exchange markets at the moment.
Chinese economic data has shown a slowdown with GDP coming out at 6.4%, which although very impressive this is highlighting a slow down in the world’s second largest economy.
Chinese GDP hit its lowest level in ten years earlier this week and whilst the Trade Wars with the US continue to affect China this is also another reason why the AUD is struggling
As Australia is heavily reliant on what happens with the Chinese economy this is in part a reason for the weakness in the value of the Australian Dollar.
Another reason for the weakness of the Australian Dollar comes down to the level of interest available for the investor. Last year the US Federal Reserve hiked interest rates to 2.25% and with the Australian interest rate sitting at 1.5% investors are bypassing the Australian Dollar in favour of the US Dollar for more attractive rates of return on their investment.
As we turn the focus back towards the UK it appears as though the Brexit may continue to run and run with lots of speculation that the UK will extend Article 50 rather than leave the European Union on 29th March.
Since the start of December when the previous vote was postponed the most recent vote from early last week confirmed that a majority of 230 MPs voted against the current Brexit deal on offer.
At the moment the likelihood of MPs voting through the next plan appear very unlikely and this suggests that Article 50 will have to be extended unless the UK crashes out of the European Union with a no deal Brexit and this is why the Pound has made gains vs the Australian Dollar.
Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you better exchange rates than using your own bank so if you would like a free quote when buying or selling Australian Dollars then contact me directly for a free quote and I look forward to hearing form you.
Tom Holian [email protected]