The Australian dollar has remained fairly stable against the pound in this trading week so far, staying in and around the 0.5 AUDGBP levels over the course of the first few trading days of the week.
With the Reserve Bank of Australia (RBA) deciding to keep interest rates on hold we saw little movement from the interest rate decision, but the key from the statement after the rate decision was that the RBA were ready to act where necessary, and having seen other central banks around the world changing interest rates outside of their usual meetings this is something to be aware of in the coming weeks.
Both the Federal Reserve in the U.S and the Bank of England have moved to cut interest rates in the past few weeks to try and battle against the issues that have arisen with Coronavirus and the toll that it may take on the economy in the coming months. Should the RBA make a move later down the line then a cut in rates can be seen as negative for a currency so be aware that this could cause Australian dollar weakness.
Both the pound and Australian dollar have quite a few negatives hanging over their heads, with the Australian economy due to take quite a hit due to their own economic struggles, as well as that of China’s, there is the argument that we could see a much weaker Australian dollar as the year progresses, however you then focus on the pound and the U.K has plenty of economic problems itself, not to mention Brexit which appears to have been swept under the carpet for the time being!
We’re likely to continue seeing volatility in the months ahead for both currencies. If you currently hold Australian Dollars and are waiting to bring them back into pounds, or you have Sterling you wish to exchange in to Australian dollars and you are trying to pick the right time to do it, you can get in touch using the form below for insight into the factors likely to impact your exchange in the coming weeks and months. I’ll be happy to contact you personally and discuss your enquiry.