The Australian Dollar has experienced a problem in recent times vs the Pound owing to a number of different factors.
The Australian economy is currently under pressure domestically caused by the cost of living in high wage growth areas.
This is causing Australian citizens to limit their spending but I think the main issue is that of the uncertainty caused by what is happening with the ongoing US China Trade wars.
Australia is heavily reliant on what happens in the world’s second leading economy so any negative effects on Chinese growth can cause problems for the Australian economy.
US President Donald Trump has recently imposed another tariff, this time totaling 10% on US$300bn worth of Chinese goods. This has caused the Chinese to retaliate by attempting to stop Chinese companies from buying agricultural products in the US.
In the meantime Goldman Sachs have suggested that the trade war could continue to rumble on which does not bode well for the Australian economy and therefore this could continue to negatively impact the Australian Dollar vs the Pound.
The Reserve Bank of Australia has cut interest rates a couple of times already this year and I think we could see more rate cuts coming in the future especially if economic data continues to see a slow down in Australia.
On Thursday, Australia will release it latest unemployment figures. Expectations are for a figure of 5.2% in July so anything different could cause movement for GBPAUD exchange rates. Therefore, if you’re planning a currency transfer involving Australian Dollars in the near future make sure you pay close attention to the data.
If you would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian [email protected]