Another day and yet another decline for the sterling to Australian dollar exchange rate

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Category: Australian Dollar News

Written by Rob Samson

International Money Transfers at our sister site

"Rumours suggest that the AUD is a major target of the Swiss National Bank’s diversification, which adds to the story of Germany targeting aussie assets" - Richard Driver at Caxton FX.

The Australian dollar (Currency:AUD) continues its one-way flow against the UK currency as investors continue to rush to the new darling of the currency world.

The pound to Australian dollar exchange rate is a quarter of a percent lower on Tuesday night's closing rate at 1.4768.

The pound to New Zealand dollar exchange rate is 0.01 pct lower at 1.9132.


Australia's economy is simply outperforming that of the UK, and until we start seeing some positive economic readings, and some solid signs of recovery, the poor performance of GBP-AUD is likely to continue.

"One key factor supporting the AUD at present is a story surrounding the huge diversification of the Swiss National Bank’s currency reserves. Data earlier this week revealed that the SNB’s currency reserves reached an all-time high, as it continues to fight against the excessive strength of the swiss franc. Rumours suggest that the AUD is a major target of the Swiss National Bank’s diversification, which adds to the story of Germany targeting aussie assets," says Richard Driver at Caxton FX.

The New Zealand dollar (Currency:NZD) is also preferred to sterling, this despite increasing negativity towards the New Zealand currency as investors reflected on NZ Prime Minister Key’s talk of weakening the dollar.

Tonight brings the key monthly employment update from the NZ labour market, which is expected to be quite robust.

"Sterling may struggle to hold on to yesterday’s gains and will probably continue paring back down towards 1.90," says Driver.