UK Pound to Australian Dollar Still Climbing as China Stumbles
Welcome to my weekly update of the UK pound to Australian dollar exchange rate. This is intended to give you a rough guide to the exchange rate you can expect, when you move to Australia!
This week, the pound has once again clawed back ground from the once-invincible Australian dollar, reaching the giddy heights of 1.53.
This is a rise of 1.00 against the emu since last week, and represents the highest GBPAUD rate in a full three months.
Great news if you're thinking about relocating to Australia!
Beijing Trips and Canberra Falls
The reasons the Australian dollar has lost out are the same as the past eight weeks, when the non-stop ascension of the emu against the pound came to an unceremonious halt.
China continues to stumble across its own shoelaces in economic terms, casting doubt on the all-important mining boom in Australia.
China's gargantuan manufacturing base contracted for the 5th month straight this month, dropping to 48.1 on the HSBC index (figures beneath 50.0 indicate a slowdown.)
This is bad news for the guys and gals pumping out coal and iron in Australia's mines because, without Chinese demand, they have almost no reason to keep digging these materials out of the ground.
That in turn puts something of a spanner in the works where Australia's economic growth is concerned. That in turn is a hitch for the dollar.
Pound to Australian Dollar - Looking Ahead
In the short-to-medium term, it seems to me the pound could continue to gain against its antipode rival, unless China takes immediate and imposing steps to shore up its manufacturing base.
The pound could also take a nose dive if things in the UK turn pear-shaped, which is all-too conceivable given the shaky recovery at present.
Of course, anticipating exchange rates is about as easy as winning the jackpot on the lottery, so don't hold me to those predictions!
Emigrating to Australia?
If you're moving to Australia then, there are two or three things you can do at this point regarding the exchange rates.
The first is to decide that, alright, this is a great rate and you're happy to change currencies, even if you're not moving for some time.
In this case, you can set up a forward contract, to lock in the exchange rate up to one year in advance. This is a great way to protect yourself, if later on the pound takes a turn for the worse.
The alternative is to wait of course, and see if the pound continues its stunning recovery against the emu dollar.
Get in Touch
In either case, if you do have questions about changing to Australian dollars or moving your money to Australia, get in touch with the box below! I'd be delighted to help.
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