The Pound has just started to drop against the Australian Dollar after hitting 1.80 recently which has provided some excellent opportunities to buy Australian Dollars with Sterling. As the Australian Dollar is seen as a commodity based currency the Australian Dollar will often be affected by what is happening in China.
China is Australia’s leading trading partner and as it has shown signs of a slowdown with manufacturing data, this has caused the AUD to weaken against the Pound. However, following positive US unemployment figures at the end of last week the Australian Dollar has started to fightback against the Pound.
As the US is the world’s leading economy the positive economic data has helped the AUD to strengthen as the currency will be affected by global appetite for risk and as the AUD is affected by commodity prices this is part of the reason for the fightback.
The Trade Wars between the US and China are likely to be one of the dominating factors over the next few weeks for the value of the Australian Dollar and although we are in a period of what appears to be a stalemate between the two nations, if the US insists on further tariffs in the near future this could also negatively affect the Australian Dollar.
Pound to Australian Dollar forecast: Brexit still main GBP/AUD driver
The main factor that is likely to determine what will happen to the Pound to Australian Dollar exchange rates is the Brexit talks, which are on going, with a potential vote due to take place next week.
The potential for negative movement for the Pound is rather high and as we saw in early December when the previous vote was cancelled the Pound has struggled when uncertainty increases.
If the vote gets postponed or if the Brexit deal on offer is voted against, which I think is likely, then I think we could see the Pound fall against the Australian Dollar. If you’re thinking about making a transfer to Australia then it may be worth getting things organised in the near future.
However, with so much uncertainty this is likely to cause a lot of volatility so make sure you’re well prepared for any eventuality.
If you would like to discuss Pound to Australian Dollar exchange rates or an upcoming currency transfer then please use the form below to contact me directly. I look forward to hearing from you.