Pound to Australian dollar exchange rates have been trending higher and lower owing to the ongoing uncertainty surrounding the outlook on Brexit and Trade Wars, these have been two of the central events on the pairing.
GBP/AUD rates had risen to the highs of 1.91 on the 16th October, versus the post EU Referendum vote lows of 1.59. This move has been in part down to the delay or possible removal or no-deal Brexit as an option we might have ahead.
How the UK elections are affecting GBP to AUD rates
Looking forward, investors will be keen to see how the UK election pans out and whether or not the Conservative Party can command a majority. It will be of interest to monitor such developments for GBP/AUD levels, as we know from history the uncertainty of an election can trigger volatility on the currency concerned.
The market will also be keen to see just how the US – China Trade Wars develop, and if there can be any common ground in the prospect of proposed talks ahead. GBP/AUD levels are currently trading at 1.87, which indicates a closeness to the previous highs.
Looking into November we are likely to have the UK election take more interest as the latest polls provide us with news and information on what we might expect for the future.
Overall, there is an expectation that a Conservative majority is the most likely outcome, and this has kept the pound buoyant.
Will the RBA cut interest rates again in November
Other events to monitor in November will be the prospect of further interest rates cuts by the Australian central bank, the RBA (Reserve Bank of Australia). The Australian economy has been losing steam ahead of the China trade wars and this has seen the RBA look to prevent a slowdown.
GBP/AUD levels will face various challenges in November, for the latest news and events which may influence your currency rate, please do get in touch using the form below.