Peter Lavelle - 13.04.2012
My latest update of the British pound to Australian dollar exchange rate, covers the 5th to 12th April 2012.
This is intended as a brief guide to what's affected the exchange rate in the last week, to help you decide if now is the best time for you to change currencies.
Following three months lurking in the background the European debt crisis has reared its ugly head again this week, with the markets speculating that Spain will become the 4th member of the Eurozone to need a bailout.
Unfortunately, regardless of whether investors are right or not, this has put the GBP on the back foot, and this week the British pound to Australian dollar rate remained unchanged at 1.5450.
This follows almost two months of no-holds-barred gains for the pound, and comes in spite of the fact that both Australia's and China's economies are easing up.
For instance, mining group BHP closed one its biggest mines in Australia this week, casting a shadow over the nation's commodities boom, while imports to China fell, indicating that the Beijing government is having a tough time shifting growth from exports to domestic consumption.
Looking ahead, what might the future have in store for the British pound to Australian dollar exchange rate?
That depends a great deal on Spain.
If the Madrid government can convince the international markets to get off its back, that might give the Eurozone some breathing space, and so boost the pound (the pound is affected because the UK is so close to Europe.)
For Australia, the outlook really doesn't look so good. China is forecast to endure its lowest growth in more than a decade in 2012, tearing a huge hole in its demand for Australian minerals. Without this, Australia is bereft of its main source of growth, which makes the AU dollar much less attractive.
So in short, so long as Spain gets its house in order, the pound should resume its comeback against the emu.
Knowing this, what steps might you take from here if you need to transfer money to Australia?
If you're happy with the gains the pound has made in the last two months (and do not particularly trust Spain to pull itself together) you might look to secure the present exchange rate.
If so, you can either use: