Welcome to Pure FX's latest update of the pound to Australian dollar exchange rate. This tells you when it may be the best time to exchange pounds to Australian dollars, for your money transfer!
Sterling strengthens versus the Aussie! The pound to Australian dollar exchange rate has hit 1.8311 in the last day, its highest in 10 weeks, or since October 23rd 2018.
By contrast, back on December 3rd, sterling was as low as 1.7217 versus the AU dollar, so it's since risen by +6.35% or +11 cents!
To put this into context for you, were you to transfer £250,000 to Australia at this 10-week high exchange rate, you'd get AU$457,775, or +AU$27,350 more than if you'd the same transfer back in late October.
So this may be the best time to transfer money to Australia for you!
Aussie Dollar Weakens, as Australia's House Prices Fall
The pound to Australian dollar exchange rate has hit this 10-week high, because Australia's house prices plummeted last year.
To be specific, property prices Down Under tumbled by -4.8% in 2018, with prices down by -11.1% in Sydney and -7.2% in Melbourne, compared to their 2007 peak.
Australia's house prices have fallen fast, because Australia's financial regulator Apra has tightened its lending criteria, to avoid banks giving mortgages to people who may struggle to pay them back.
Lower house prices may weaken Australia's economy this year, hurting the AU dollar!
AU Dollar Falls, as China's Manufacturing Sector Contracts
What's more, sterling has also strengthened versus the Australian dollar, because China's manufacturing sector unexpectedly shrank in December, according to recent data.
Chinese factories fell to 49.7 last month, said Caixin on Tuesday, below both financial market forecasts for 50.1, as well as the 50.0 figure that signals economic growth.
This was the 1st contraction in China's manufacturing sector in 2 years, and the weakest since February 2016.
China is Australia's biggest trading partner, so when China sneezes, Australia catches a cold, thus weighing on the Aussie dollar!
Pound Strengthens, as UK Factories Beat Forecasts
Moreover, the pound has also hit this 10-week high versus the Australian dollar, because the UK's manufacturing sector surprisingly accelerated in December, said trusted statistics today.
According to IHS Markit's monthly health check of UK factory activity, output reached 54.2 last month, above both November's 53.6, plus market predictions for 52.5.
This was the highest figure in 6 months, buoyed by a surge in new orders, as domestic and foreign clients stockpiled ahead of Brexit.
This will bolster the UK's GDP growth in Q4 2018, thereby lifting the pound versus the Australian dollar!
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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 protected]