The Ukraine war and energy crisis has taken over from the coronavirus pandemic as the main theme affecting the GBP to AUD rate & forecasts.
BER Research In the first quarter the GBP/AUD exchange rate dropped on the impact of the Ukraine situation on commodity prices — this was good for AUD and bad for GBP.
Since then the pound to Aussie rate has fluctuated around the 1.76 level (1 AUD = 0.56 GBP), except for a drop to 1.60 when the market rejected the new UK chancellors controversial tax policies.
| Date | GBP/AUD | Change | Period |
|---|---|---|---|
18 Nov 2022 | 1.7815 | 1.6% ▲ | 2 Week |
03 Sep 2022 | 1.6901 | 7.1% ▲ | 3 Month |
02 Dec 2021 | 1.8765 | 3.5% ▼ | 1 Year |
03 Dec 2017 | 1.7779 | 1.8% ▲ | 5 Year |
04 Dec 2012 | 1.5376 | 17.7% ▲ | 10 Year |
07 Dec 2002 | 2.8041 | 35.5% ▼ | 20 Year |
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As we moved through 2022 the prospect of more Australian interest rate rises sooner than expected has generally boosted the Aussie dollar vs Sterling rate.
The Sterling to Aussie exchange rate is even more volatile than usual because of the uncertainties around how the British economy will perform post-Brexit and the relative impact on the two economies of the Covid-19 pandemic and russian invasion of Ukraine.
The Aussie dollar rebounded from around US62¢ in October and November on the suggestion that the RBA would slow the pace of interest rate hikes.
However, economists are divided as to whether this change in fortunes for the Australian dollar will continue into the new year.
The pound hit an all-time low (since decimalization in 1971) in late September of 1.03 against the greenback (1 USD = 0.97 GBP) — reacting to the controversial tax-cutting policies from the new chancellor.
The outlook for sterling against most currencies over the winter remains extremely challenging in its precarious post-Brexit/Ukraine war economic environment.
Australia and the United Kingdom signed a free trade agreement in June 2020, which will make whisky and wine cheaper in both countries and reduce tariffs on speciality foods, also easing travel and work restrictions.
Disclaimer: Please note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.