The pound to Australian dollar exchange rate has moved higher with rates breaking over 1.92 for the GBP vs AUD pair creating a good opportunity for those looking to buy Australian dollars.
The UK general election set for Thursday 12th December is fast approaching and is the main driving force for sterling exchange rates. The pound has rallied higher after an opinion poll released yesterday suggested that the UK will avoid a hung parliament in the election. The markets are taking some comfort that the general expectation is for a conservative majority. However it has been reported that there have been an additional 3 million voters who have registered since the UK election was called and it marks a significant increase in numbers compared to the run up to the 2017 election. Of course in that election many of the polls put the conservatives ahead with a good lead but in reality Theresa May lost her majority in parliament.
A hung parliament could see considerable volatility for the pound and potential considerable weakness especially if events turn out differently to what the markets are currently expecting.
Key Australian Economic Data
The Australian dollar has come under further pressure this week after weaker trade data showed the surplus it holds fell by a third in the month of October. Exports fell by 3% as per the Australian Bureau of Statistics while imports remains steady creating the downfall. This week also saw Australian retail spending remained steady when the markets were hoping for a pick up in the numbers.
Those looking to buy or sell Australian dollars would be wise to pay close attention to the UK general election. Remember, this election is being held in very unusual circumstances to the extent that it will be the first election in 100 years that will take place in the month of December. It is being held to try and break the gridlock in parliament and the stakes are high.
If we go back to the 2016 in out EU referendum the polls said it was too close to call stating the vote could go either way. In the early hours of the following morning it soon became apparent that the Leave vote would win and the pound crashed that morning against every single major currency. Any surprise result could have a major impact on the price of GBP to AUD exchange rates.
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