Welcome to Pure FX's latest update of the pound to Australian dollar interbank exchange rate.
This tells you when it's a favourable time to exchange pounds to Australian dollars, for your money transfer!
Sterling soars versus the Aussie! The pound to Australian dollar interbank exchange rate has hit 1.8474 in the last day, just a whisker below its highest in 22 months, or since June 23rd 2016.
The pound has rocketed against the AU dollar, because the minutes of the Reserve Bank of Australia's latest meeting suggest that Australia's interest rates will stay on hold for now.
The Aussie has weakened, in particular as the RBA's latest minutes, released on Tuesday, suggest that the central bank will keep Australia's borrowing costs at record lows of 1.5% until at least 2019.
According to the central bank, there's "no strong case" to lift Australia's interest rates at present, as "inflation would remain low for some time", thus dragging down the AU dollar.
In addition, there's "low growth in labor costs" in Australia, says the RBA, which tells us that wages are rising slowly. This may weigh on Australia's GDP outlook, and the AU dollar too.
Also, the Reserve Bank warned that a strong Australian dollar would slow Australia's economic growth path, while under-employment remains. This has also hurt the Aussie!
Australian dollar weakens, as Morgan Stanley warns of slowing GDP
Furthermore, the pound has also neared this 22-month high against the Australian dollar today, because Australia's GDP growth will slow in 2018, says global investment firm Morgan Stanley.
The AU dollar has lost out, because Australia's economy will slow -0.4% compared to last year to reach just 2.0% in 2018, according to a Morgan Stanley outlook published today.
In particular, Morgan Stanley has warned that there's a "consumer crunch" in Australia, as low wage growth forces Australian shoppers to spend less, thus weakening the Aussie dollar.
In addition, the investment firm forecast "further [house] price declines over 2018" in Australia too. This may make Australians feel less wealthy, and so drag down the Australian dollar.
"We don’t think any of the fundamental drivers of our cautious outlook on the economy have changed," concluded Morgan Stanley about the outlook Down Under, thus hurting the AU dollar too.
As a result, the pound to Australian dollar interbank exchange rate has neared its highest since June 23rd 2016 in the past day, and may rise higher!
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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 email@example.com.