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 shoots up versus the Aussie! The pound to Australian dollar interbank exchange rate has hit 1.7911 today, its highest in 5 weeks, or since February 8th.
The pound has risen against the AU dollar, because Donald Trump’s new chief economic adviser Larry Kudlow said yesterday that he favours tariffs on China, Australia’s biggest trade partner.
The Australian dollar has sunk, because speaking on CNBC yesterday, Mr. Kudlow said that China needs a “tough response” and that “China needs a comeuppance on trade, I believe that.”
This has harpooned the Aussie, because China is Australia’s biggest destination for exports. Hence, if America’s tariffs hurt China’s economy, this would hurt Australia’s economy too.
In addition, the AU dollar has also gone wobbly, because yesterday Mr. Kudlow also said that he would “would buy King Dollar and sell gold”, and that he wanted the US dollar a “wee” bit higher.
This has given the Australian dollar a knock on the noggin, because Mr. Kudlow’s remarks suggest that Mr. Kudlow wants a strong US dollar, thus weighing on alternative currencies like the Aussie!
Aussie sinks, as Australia’s home loans fall in January
Furthermore, the pound to Australian dollar interbank exchange rate has also hit this 5-week high, because Australia’s home loans sank more forecast in January, said official data this week.
The Aussie has tripped over its shoelaces, as Australia’s home loans fell by -1.1% at the start of 2018, said the Australian Bureau of Statistics on Tuesday, below market forecasts for -0.1%.
This has weakened the AU dollar, in particular as this was the 2nd consecutive fall in Australia’s home loans, following December’s -2.3% drop, pointing to softness in Australia’s housing market.
To be specific, approvals to buy newly built dwellings fell by -4.7% in January, while lending for the purchase of established homes dipped -1.5% too, thus weighing on the Australian dollar.
Australia’s home loans have sunk, because the housing regulator Down Under has tightened lending conditions to investors, to rebalance the market to 1st-time buyers, thereby hitting the Aussie.
As a result, sterling has reached this 5-week high against the Australian dollar, and could move on up further!
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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.