In today’s Pound to Australian Dollar Forecast we look at the events that are affecting GBP/AUD exchange rates now and what might impact the rate this week.
Australian Dollar strength whilst the Pound weakens
The Australian Dollar has recently hit its best level to buy Pounds in three months after a bout of both strength for the Australian Dollar combined with Sterling weakening during this period.
The Pound has continued to struggle owing to the uncertainty of the ongoing Brexit news and this has caused the Pound to Australian Dollar exchange rate to drop to as low as 1.75 earlier on this week.
Mixed opinions of Theresa May’s Brexit deal
Theresa May’s draft Brexit proposal appears to have had very mixed reviews and with the PM due to meet in Brussels later today to take things further. The news around this event could result in a lot of volatility for Pound to Australian Dollar rates over the next couple of days, depending on how the talks go with the European Union.
Theresa May will be talking with the President of the European Commission Jean Claude Juncker and it will be the first time the two have met since releasing her statement about the proposal last week.
Mark Carney positive about Brexit deal
It appears as though the Bank of England are offering their support to the agreement and Governor of the central bank Mark Carney has said that the Brexit deal would support the economy.
He went on to highlight the importance of the transitional deal to ensure that the process remains as smooth as possible and these comments helped to reassure Sterling. Following Mark Carney’s comments the Pound managed to stabilise and marginally improve against the Australian Dollar during yesterday’s trading session.
Australian Dollar forecast: US / China Trade War
Turning the focus to down under we have seen the Australian Dollar strengthen against the Pound as the Trade Wars between the US and China appears to have improved.
As China is Australia’s largest trading partner any signs of a problem in the world’s second largest economy can often result in negative movements for the Australian Dollar so with the improvements in the talks between the US and China this is another reason for the reason strength of the Australian Dollar vs the Pound.
As we head in to the rest of the week the Pound to Australian Dollar exchange rate is likely to be affected by what is happening politically in terms of the Brexit news so make sure you keep a close eye out for what is happening.
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