Welcome to Pure FX's latest update of the pound to Australian dollar interbank exchange rate!
Sterling rises versus the Aussie! The pound to Australian dollar interbank exchange rate has hit 1.8692, very close to a new 21-month high, its highest since June 24th 2016.
To put this into context for you, back at the start of this year, sterling was as low as 1.8098 versus the Australian dollar, so it's since climbed by +3.28%, or close to 7 cents.
At today's interbank exchange rate, £250,000 would be worth AU$467,300, or +AU$14,850 more than on January 1st 2019!
So this could benefit you to transfer money to Australia, if you're a Briton planning to emigrate Down Under this year.
Pound to Australian Dollar Rate Jumps, as Aussie Economy Slows
The pound to Australian dollar interbank exchange rate has neared this new 21-month high, first because Australia's economy slowed more than forecast at the end of last year, said official data today.
Australia's Gross Domestic Product (GDP) expanded by just +0.2% in October to December 2018, according to the Australian Bureau of Statistics (ABS). This was below financial market forecasts for +0.3%.
In particular, all of Australia's economic growth in Q4 was due to the rising population. Without this, Australia would have entered recession. So this has weighed down the AUD!
GBP to AUD Rate Strengthens, as RBA Likelier to Cut Interest Rates
What's more, sterling has also approached this new 21-month high versus the Aussie, because with Australia's economy slowing, the Reserve Bank of Australia (RBA) now looks likelier to cut interest rates.
In particular, Australia's central bank could cut the cash rate below 1.5%, to make it cheaper to borrow money. This would encourage Australians to take out loans, and so boost GDP growth.
"We do see significant risk of a cut, a risk which has risen with these weak data," says Kaixin Owyong, Economist at NAB. So this to has boosted the value of sterling versus the Australian dollar!
Sterling Climbs Versus Aussie, as "No Deal" Brexit Less Likely, Says Poll
Moreover, the pound to Australian dollar interbank exchange rate has also flown higher, because there's a falling chance that the UK will exit the EU without a deal, says a new respected poll.
According to financial newspaper Bloomberg's newest survey of 16 banks, just 9% think that there'll be a 'No Deal' Brexit at the end of this month. This is down from a near-20% chance in January.
Now, 54% of banks believe that the UK will extend its Article 50 negotiating window, to win more time to obtain a favourable Brexit. This would boost the UK's GDP outlook, and may perhaps benefit sterling also!
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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.