GBP to AUD Forecast: Will the Pound continue to improve against the Australian Dollar?

Pound to Australian Dollar forecast Reserve Bank of Australia minutes will interest rates be cut further?

GBP to AUD Forecast: The Pound continues its fantastic run against the Australian Dollar

The Pound has been performing very well against the Australian Dollar in recent weeks gaining by as much as 9 cents since the start of December. This is a difference of £5,850 on a currency transfer of AUD $200,000.

This particular statistic highlights the importance of keeping up to date with what is happening to the foreign exchange markets and especially the GBP/AUD exchange rate which has moved a huge amount in the last month – which is great news for anyone looking to convert Pounds into Australian Dollars.

AUD forecast: Australian economy under pressure

The Australian economy has been coming under a lot of pressure in recent weeks owing to the slowdown experienced in China, which has been evident in a number of recent economic data releases.

As Australia is heavily reliant on the Chinese economy in terms of trade, any slowdown in the world’s second largest economy can often have a negative impact on the value of the Australian Dollar vs the Pound.

The Chinese stock market has also fallen a lot during the last quarter of 2018 owing in part to the ongoing Trade Wars between the US and China and this issue shows little signs of abating in the near future.

Australian interest rates to remain on hold for the foreseeable future

Meanwhile, as the Australian economy shows signs of a slowdown the housing market down under has also revealed some big problems. This is causing a real headache for the Reserve Bank of Australia (RBA).

Property prices in Perth in particular have seen the biggest fall in recent years and this means that the RBA are unlikely to be raising interest rates at any time in the near future.

The Australian Dollar is often used as a carry trade currency which means borrowing in a low yielding currency such as the Swiss Franc to invest in a currency, which offers a higher return in terms of interest. However, with the US Federal Reserve having raised interest rates once again in the US to 2.5% the disparity between what is being offered in the US and Australia is now at its biggest difference in history and this means global investment appears to be bypassing the Australian Dollar which is weakening the AUD vs the Pound.

What impact will the Brexit have on the value of the GBP to AUD forecast?

The Pound has fared very well against the Australian Dollar recently and appears not to have been affected by what is happening with the issue of Brexit. Therefore, it could be argued that the potential bad news has already been priced in. However, as we saw when the Brexit vote took place in June 2016 the market crashed with the news, so if we head towards a ‘no-deal’ Brexit could this have another large impact on the value of the Pound vs the Australian Dollar?

Having worked in the foreign exchange markets since 2003 I am confident of being able to offer you highly competitive exchange rates as well as helping you with the timing of your currency transfer. Please contact me directly using the form below: