Welcome to Pure FX's latest update of the Australian dollar to pound exchange rate. This tells you when it may be the best time to exchange Australian dollars to pounds, for your money transfer!
The Aussie strengthens versus sterling! The Australian dollar to pound exchange rate has hit 0.5704 today, its strongest in 10 days, or since November 19th.
By contrast, back on November 22nd, the AU dollar was as low as 0.5622 versus the pound, so it's since climbed by +0.75 cents, or +1.45%! To put this into context for you, if you transfer AU$250,000 to Australia at today's exchange rate, you'd get £142,600, or +£2,050 more than if you'd done so on November 22nd!
As a result, it's a fab time to emigrate from Australia to the UK, or import British goods for your Aussie firm.
Pound Weakens, as Bank of England Warns of 'No Deal' Brexit
The Australian dollar has reached this 10-day high versus the pound, because the Bank of England (BoE) has warned of the risks of a "no deal" Brexit for the UK economy.
Yesterday, the UK's central bank said that, if the UK crashes out of Europe, the UK GDP may fall by -8%, while sterling could fall by -25%. Moreover, BoE governor Mark Carney has told BBC Radio 4 today that fewer than half of UK businesses have Brexit contingency plans.
This has weakened sterling, because the UK central bank's forecasts highlight the importance of the UK agreeing an orderly Brexit deal!
Aussie Rises, as AU Businesses Lift 2018/19 Investment Plans
What's more, the Australian dollar to pound exchange rate has also climbed, because Australian businesses intend to invest more in 2018/19, it's been revealed today.
According to Australia's quarterly CAPEX survey of business investment plans, Aussie firms intend to spend AU$114 billion into next year, +11% higher than previously thought. In particular, Australian companies plan to invest in equipment, plants and machinery, in the non-mining sector.
This bodes well for Australia's continuing economic growth into 2019, thus lifting the Australian dollar higher versus the pound!
Australian Dollar Climbs, as US Fed Less Likely to Hike
In addition, the Australian dollar has jumped to this 10-day high against sterling, because the US Federal Reserve now looks less likely to lift interest rates next year.
Yesterday, US Fed chairman Jerome Powell said that America's interest rates are already "just below the level that would be neutral for the economy". This has lifted the Australian dollar, because when the USA keeps interest rates lower, investors are likelier to park cash in Australia.
Moreover, interest rates in Australia stand at 1.5% at present, significantly above the UK's 0.75%, thereby boosting the Australian dollar!
AU Dollar Could Continue to Climb, as Australia's Q3 GDP due
Furthermore, looking ahead, the Australian dollar to pound exchange rate could continue to climb.
This is because Australia's economic growth figures for July to September are released next week, in which it's thought that Australia's GDP expanded by between +0.5-1.0%. If so, this will mean that Australia remains one of the fastest-growing industrialised countries in the world, buoyed by Australia's close economic ties with Asia.
Already, Australia has achieved over 25 years without a recession, pointing to the significant economic success Down Under, which may lift the Aussie!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email firstname.lastname@example.org.