The Australian Dollar has continued to struggle recently against the Pound hitting the best rate to buy Australian Dollars since June 2016 this week.
Since the lowest point in December the Pound has improved by as much as AUD14,500 on a currency transfer of £100,000 highlighting the importance of keeping up to date with current events both in the UK and Australia.
The Reserve Bank of Australia have continued to remain in a rather neutral position concerning monetary policy by keeping interest rates on hold earlier this week.
The Australian economy has continued to show signs of concern during recent months and this is clearly being reflected in what is happening with the Australian Dollar at the moment.
The Australian economy is also heavily reliant on both growth and demand in China and with the world’s second largest economy slowing down this is causing the Australian Dollar to weaken.
Problems with coal coming in to China from Australia have hit the headlines recently and it appears to be only directed at Australia rather than other countries who trade with China so is this a political move by the Chinese who are maybe punishing Australia for their support to the US concerning the recent Trade Wars between the US and China?
Turning the focus back towards what is happening in the UK and we have a number of key votes due to take place in the House of Commons surrounding Brexit.
On March 12th the House of Commons will hold their ‘meaningful vote’ about what MPs think of the current Brexit deal on offer. The likelihood is that it will be voted against and this means the following day will see a vote on whether or not MPs will back a ‘no deal’ Brexit.
Therefore, I expect a huge amount of volatility on GBPAUD exchange rates and could this see the Pound break past 1.90 against the Australian Dollar.
I have worked for one of the UK’s leading currency brokers for over 16 years and I’m confident that I can save you money on exchange rates compared to using your own bank so if you would like a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]