Peter Lavelle, 21.02.2013
Great news for you this week if you're currently in Australia, and plan to transfer money to the UK.
The Australian dollar to UK pound exchange rate has risen and risen, and this week hit its highest point since 10th August 2012, at 0.6727.
This is to say, if you plan to buy UK pounds, right now you'll get the highest total in 7 months.
Please bear in mind, this 0.6727 rate is the interbank rate at the time of writing. It's therefore not indicative of the exchange rate you'll receive.
For an actual exchange rate quote, get in touch with the form below. We promise to get you a better exchange rate than your bank.
The reason the Australian dollar to pound exchange rate is so good is UK economic weakness.
The UK shrank -0.3% in the last 3 months of last year, putting it directly on course for a triple-dip recession.
Meanwhile, this week the Bank of England said it fears "lasting destruction of productive capacity and increases in unemployment" in the UK.
That all sounds really pessimistic.
Given that, sterling is falling, sending the Australian dollar to pound exchange rate higher and higher.
However, I think the Australian dollar could soon weaken against the pound.
This is to say, the exchange rate for sending money to the UK could soon fall from this 7-month high.
This is because the Australian economic outlook is getting worse.
For instance, this week data showed that retail sales in Australia fell -0.2% in December, the 3rd consecutive drop.
This is the first time retail sales have fallen 3 times in a row since 1999, and signals Australia's economy is quickly slowing down.
In addition, this week Australia's central bank cut its growth outlook for this year, from 2.75% to just 2.5%.
That's well below the Australian average.
Given that, yes, right now is the best time to exchange Australian dollars for UK pounds since last August.
But the exchange rate could very soon worsen.
Therefore, it's worth taking advantage of this 7-month high while it's available.