GBP/AUD, GBP/NZD Exchange Rates Reach Highest Level of the Year
The pound has been climbing against both the Australian and New Zealand dollars this week and has made some quite substantial gains. Those looking to buy either of the Trans-Tasman currencies may want to speak to a foreign exchange expert such as our partner, FC Exchange, to see how they can maximise their international money transfers.
Pound, Going Up
The pound has been supported by a few events this week, such as Brexit optimism and labour market data. With a transition deal in place, the prospect of a cliff-edge Brexit has been avoided and has offered the pound some support. Wednesday saw sterling gain further when the UK’s unemployment rate dropped to its joint-lowest level since 1975 at 4.3%. Additionally, there are signs that UK wages are catching up with inflation; average weekly earnings rose by 2.8% in the three months through January; inflation sat at 2.7% in February.
Commodity Currencies Under Pressure
Meanwhile, the antipodean currencies have been under pressure from weaker commodity prices and tariff concerns. The Australian dollar has sunk to multi-month lows against some of its currency peers, and the pound to Aussie dollar (GBP/AUD) reached its strongest level of the year at 1.83 interbank this week. In early January the GBP/AUD exchange rate was at levels of 1.71.
It’s a similar story for the pound to New Zealand dollar (GBP/NZD) exchange rate which has spiked to levels of 1.96, after reaching lows of 1.86 in early January. However, there are months of Brexit trade talks ahead and plenty of economic data to come which might impact how the pound trends. Additionally, risk appetite for currencies such as the Aussie and Kiwi could pick up, leaving the GBP/AUD and GBP/NZD exchange rates to shed some gains.
Speak to a foreign exchange expert and make sure you make smart decisions about when to transfer, so you get more currency for your money. If you’re moving money abroad for a property purchase, you can even lock-in an exchange rate for up to two years. You can find out more about FC Exchange, here.