Australian Dollar Pound Exchange Rate Mounts a Recovery after GBP ‘Brexit’ Deal Bounce
The Australian Dollar to Pound (AUD GBP) exchange rate has begun to recover after dropping to a new monthly low yesterday, after the UK Prime Minister Theresa May hinted at a transitional ‘Brexit’ deal.
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Pound (GBP) Pressures Australian Dollar (AUD) Lower as May Hints at Transitional Deal
The Australian Dollar plummeted against the Pound in the early hours of Tuesday as May sought to alleviate market uncertainty over ‘Brexit’ in her speech at the annual CBI conference.
The British Prime Minister indicated that the UK government would be willing to negotiate for a transitional agreement with the EU, which would allow British businesses to retain access to the single market for a set period of time after the UK leaves the EU, in which time a new trade agreement would be negotiated.
Australian Dollar Rallies as Chinese Commodity futures go Wild
However the Australian Dollar rebounded Tuesday evening as ongoing speculation on Chinese commodity futures continued to run unabated, allowing the high-yield ‘Aussie’ to make substantial gains against Sterling.
This is partly thanks to China’s One Belt One Road (OBOR) initiative as the colossal Chinese infrastructure project aims to build roads, ports and bridges through much of Asia, increasing demand for raw materials.
AUD GBP Forecast: UK Autumn Statement Scheduled for Wednesday
The AUD GBP exchange rate is likely to witness some increased volatility tomorrow as the UK Chancellor prepares to release his first Autumn Statement. Analysts predict that the Chancellor will alter his predecessor’s plans for balancing the public deficit by 2020, allowing for increased public spending to help with the shock of ‘Brexit’. However there are concerns over how Hammond will deal with a £100billion ‘black hole’ in the public deficit.
Current Interbank Exchange Rates
At the time of writing the AUD GBP exchange rate was trending around 0.59 and the GBP AUD exchange rate was trending around 1.68