The Pound is still fighting back against its recent downturn, however, despite its best efforts Sterling remains on the back foot against the Australian Dollar. With positive Chinese data bolstering the AUD’s value.
The AUD is still at three year highs against the Pound – trading considerably below 1.70, which is unusual, but not unexpected given the uncertainty surrounding the Pound’s current position. It’s a great position to be in if you are looking to convert Australian Dollars to Pounds; but GBP’s weakness is a concern for the many British expatriates holding Sterling, or those looking to move to Australia – one of the most sought after destination for British people moving abroad.
There could be some hope on the horizon. The possibility of another Australian interest rate cut, and issues in the property market there have the potential to result in Australian Dollar weakness in the near future. So, whilst the current landscape may not be favourable, there could be opportunities to trade when spikes in the Pound’s favour present themselves. Watch out for these as key announcements are made regarding with GBP or AUD.
This of course does work in the reverse, Brexit announcements and negotiations for the UK’s exit from the European Union have been hurting Sterling and I expect this trend to continue in the short to medium-term.