GBP to AUS exchange rate: Pound sterling STRENGTHENS as Australian dollar tumbles

Pound to Australian dollar exchange rate: Sterling has strengthened against Australia’s currency and it’s only the beginning, according to experts.

pound australian dollar exchange rate sterling GETTY

Pound sterling has strengthened against the Australian dollar

The pound to Australian dollar exchange rate has surged as the week comes to an end

The pound to Australian dollar exchange rate has surged as the week comes to an end. 

Australia’s currency has taken a hit this week and experts have warned there is more on the way for 2017. 

A pound currently buys A$1.71, up from A$1.68 as late as yesterday. 

The Australian dollar has been falling since the US Federal Reserve hiked interest rates on Thursday, hinting to a strengthening American economy.

pound australian dollar exchange rate sterling XE.COM

Pound to Australian dollar exchange rate is A$1.71

This pressure on Australia’s currency could intensify as the world rings in a new year. 

Analysts at JP Morgan have this week written to clients to warn them about a longer-term trend lower for the dollar, according to poundsterlinglive.com. 

The Reserve Bank of Australia (RBA) will be under pressure with expectations for weak inflation to continue. 

This, coupled with a strengthening US economy, could impair Australia’s own interest rate advantage. 

pound australian dollar exchange rate sterling GETTY

Pound sterling has strengthen as Australia's dollar tumbles

Martin Lewis shares his money saving tips this Christmas

Sally Auld from J.P. Morgan in Australia said: “With risks shifting around growth and inflation on the back of increased scope for fiscal stimulus in the US, we think the narrowing of interest rate differentials will be a more powerful headwind for AUD than has been the case in recent years.”

Another driving factor in Australia’s economy for 2017 is the slowing growth of China. 

The Chinese economy expects growth to slower further next year, with forecasts of 6.4 per cent down from 6.7 per cent in 2016. 

As Australia relies heavily on its exports of iron ore and natural gas to China, this decline in growth stands to impact the nation’s economy. 

pound australian dollar exchange rate sterling GETTY

Pound sterling's exchange rate has experienced a solid month against the major currencies

Meanwhile the pound has experienced a volatile week against the world’s major currencies. 

Sterling has experienced a solid month, with eight-week highs against the US dollar and the highest levels against the euro seen since July. 

The strengthening of the pound to euro exchange rate reached its peak after the Italian referendum. 

Upcoming elections in Germany and France in 2017 could stand to have a similar influence on sterling

Would you like to receive news notifications from Daily Express?