The pound to Australian dollar has hit fresh 2-year highs, presenting clients looking to buy Australian dollars with a fresh chance to buy at some of the best levels since the EU vote in 2016. The expectation is that the pound could well push higher against a weaker Australian dollar, although investors are bracing themselves for all manner of outcomes next week.
Australian dollar weakness
The overall belief for the future is that the Australian dollar could struggle further owing to the uncertainty from the Trade Wars. This has seen the Australian economy suffer. Overnight, we were dealt a taste of some of the troubles looming for the Australian dollar and also China, with Chinese exports having fallen 20%.
This is a rather troubling outcome and outlook ahead for Australia’s largest trading partner and the concern could become more troubling ahead as investors predict future interest rate cuts from the central bank in Australia. The Reserve Bank of Australia (RBA) met this week and were remaining neutral in their assessments of the outlook ahead but this could easily change.
The latest concerns over the Chinese economy have seen the Australian dollar weaker and could well spell further troubles ahead. The currency market is rightly concerned over the longer term outlook for Australia, it is quite possible on some Brexit optimism that we could see the pound rising further against the Australian dollar.
Pound to Australian dollar predictions
I would suggest a target level of around the 1.90 as a near term high, whilst clients looking to sell AUD for sterling might wish to track any downturn towards the 1.85 level. If you have a transfer to buy or sell GBP/AUD today, you might wish to keep a close eye on the US Non-Farm Payroll numbers (NFPR) which are being released at 13.30 today.
The US economy is a big influence in the global economy and can trigger large shifts in global sentiment, which can have a real influence on the Pound to Australian dollar rate.
If you would like to discuss anything you have read in my pound to Australian dollar forecast, or have a GBP/AUD exchange to make, I would be happy provide some information and insight on the factors that could impact your currency exchange in the coming weeks. You can contact me directly using the form below with any questions you have.