Not looked at the Aussie Dollar Exchange rate’s for a while but for those of you looking to migrate to Australia from the UK, it’s not great news unfortunately.
The Sterling – Australian Dollar exchange rate is about as bad as it has been for AUD buyers since the Australian government let their currency float way back in 1984.
The UK side of that equation is one of vast debt, sharp spending cuts, weak retail sales and a poor housing market.
The Australian side of this deal is a story of strong exports to China, a resilient banking sector, remarkably robust domestic economy and very high interest rates attracting increasing inward investment form other markets.
Sadly, for those planning to move to Australia and for those importing goods from Australia, there appears to be little on the horizon that will alter that position. We are seeing a slight recovery in the Pound against other currencies but those other currencies aren’t offering 4.75% interest rates or the sort of financial stability that Australia boasts.
Hopefully however, we will end the year above A$ 1.61 which would mean we are still in an uptrend which started way back in 1976 when the Aussie Dollar was a managed currency with fixed exchange rates.
Beware though that if we look likely to fall below that level and stay there, the 1984 low was A$ 1.35 and that will be a target if the markets perceive there to be room for further Australian Dollar strength.