The Australian dollar to pound exchange rate is trading at its strongest level in 7-months at the moment, as the gradual decline in the pounds value is picking up steam ahead of the vote from the Conservative Party regarding the next leader of the political party.
Pound to Australian Dollar exchange rate: Political uncertainty weighing on Sterling
At the time of writing the pair are trading just below 1.77, after recovering slightly from the low of 1.7667 earlier this morning. You would have to go back to the middle of December last year to see the pair trading as low as these levels, which goes to show how the political uncertainty surrounding the UK’s future is having an impact on the pounds value.
AUD strengthens as US China trade war tensions ease
The Aussie dollar has also been improving in strength against a number of other currencies as the trade war talks between the US and China appear to be improving, or at least there is less tension between the two at the moment compared with recent months. As China is a key trading partner of Australia’s, the Aussie dollar tends to benefit in times of strong economic performance from China so the easing off of trade tensions between the world’s two largest economies is understandably benefiting the Australian dollar’s value.
News on the Conservative leadership contest
In an attempt to sway the more hard line Brexiteers within the Conservative Party both Boris Johnson and Jeremy Hunt have implied willingness to pursue a No-Deal Brexit and this is another reason for the pound’s losses accelerating yesterday. Since the vote back in June of 2016 financial markets have always preferred the idea of a softer Brexit so the recent comments from the potential leaders have pushed Sterling lower.
Perhaps the busiest time for economic releases that could impact the GBP/AUD rate this week will be in the early hours of tomorrow when Australian Employment figures will be released at 2.30am UK time. The Unemployment Rate is expected to be 5.2% so expect any deviations from this figure to result in market movement for Aussie Dollar pairs. If you would like to be kept up to date on pound vs Australian dollar exchange rates or have an upcoming currency transfer, feel free to contact me directly using the link below.