AUD to GBP 2023 Forecast

AUD to GBP 2023 Forecast, Analysis, and How to Invest

Analysis, and How to Invest

 

Are you a forex customer looking for foreign exchange rates with good returns over the long term this year?

As usual, your one-stop Foreign Xchange expert has all the information you need to swim, not sink, in foreign currency transactions in 2023. Now, let’s talk AUD to GBP exchange rates!

In 2023 how many Australian dollars does it take to buy a Pound?

To analyse the AUD to GBP pair, we look at the forecast for AUD and GBP in 2023, determinants of the exchange rate, and how to invest in Forex.

The last point is essential to benefit from the information in this guide.

What’s the Forecast for AUD to GBP Exchange Rate in 2023?

Converting AUD to GBP can be a high-risk investment in 2023 as your investment may devalue.

This is due to the tough economy in the UK currently – inflation, recession fears, and a high unemployment rate. Plus the economy is expected to shrink by 1.3%, according to reports by KPMG.

Using the Foreign Xchange currency converter, the AUD exchange rate is 0.55 GBP as of mid-January 2023. The currency converter also shows AUD to GBP equals 1.81.

Furthermore, data from forex charts have shown the Australian Dollar has been closing in on GBP, in terms of value, year-on-year.

In 2020, you needed 2.05 Australian dollars to get one pound sterling at the lowest ebbs of the Australian currency. In 2021, it went down to 1.91 Australian dollars and 1.81 AUD in 2022.

Since December 2022, the Australian Dollar has strengthened steadily against Great Britain’s pounds weekly.

That’s not expected to change in 2023.

How AUD/GBP compares to the others common foreign exchange pairs

foreign Exchange Pairs

So, it’s not advisable for position traders to convert Australian dollars to GBP.

Logically, a GBP to AUD conversion looks like a better long-term foreign exchange investment decision than AUD to GBP conversion.

Inflation, protracted recession, and other economic issues in the UK account for this.

Something similar is forecasted for the AUD to USD currency exchange rate. Like, the GBP, the USD is expected to fall in 2023, sparked by recession fears in the US.

Australian Dollar Forecast for 2023

Multinational banking and financial services company, Rabobank has tipped the Australian Dollar to appreciate in 2023.

It also forecasts that the GBP to AUD will breach 2022 lows as the Aussie currency benefits from the higher commodity export base.

When you convert GBP to AUD, you will get a rate of 1.7070 within the first three months, 1.6212 in six months and 1.5362 in 12 months, implying ground-floor numbers for the pound sterling, the worst since 2013.

This is according to new forecasts by Rabobank.

GBP Forecast: Pounds Sterling Set for a Rough Year?

A volatile run for the pounds sterling came to an end last year. There’s not much hope that 2023 will be different.

Although the sterling has rebounded from its record low last September, the Australian Dollar is expected to hold firm against the pounds sterling- if market sentiments remain upbeat.

As the Federal Reserve continues to raise interest rates aggressively, the currencies of various countries have started “depreciation mode” one after another.

However, compared with the Canadian dollar, Swiss franc, etc., the pound has depreciated significantly.

Signs of a painful slump in Britain’s economy are mounting.

This is at a time when soaring budget deficits and double-digit inflation have led to the biggest drops in living standards on record.

That and crimped spending sparked the worst industrial turmoil in decades.

This has analysts skeptical that sterling will be able to extend, or even maintain, its recent rally against the Australian dollar.

Entering 2023, the Bank of England, which has been more “dovish” recently, may become a “blocker” in the pound’s counterattack.

John Hardy, Head of FX Strategy at Saxo Bank, said in December last year:

“The UK may be in the vanguard of an economy in recession.”

According to him, harsh fiscal conditions coupled with a dragging Bank of England could lead to further losses in the pound sterling this year.

 

Pound/Australian Dollar Exchange Rate: What Is It Influenced By?

The economies of the two countries influence the AUD to GBP exchange rates.

Specifically, the Pound is one of the most traded currencies in the world and represents one of the strongest economies of the old continent.

The Australian dollar, on the other hand, is very tied to the prices of commodities, which symbolises the Australian economy.

The other factors that affect the GBP/AUD exchange rate are:

  • Pound predictions
  • The GDP of Australia and Great Britain
  • Inflation
  • The unemployment rate
  • The policies of the respective central banks

How to Invest in the AUD to GBP Exchange

Invest in the AUD to GBP Exchange

 

To invest in these currencies, like any other, you need an intermediary for the Forex market.

Forex brokers like Foreign Xchange, headquartered in Adelaide, Australia, offer the simplest and cheapest solution.

To trade AUD to GBP on Foreign Xchange, visit the Buy Currency page and select the destination currency and the amount you wish to trade.

Next, tap Buy Currency and complete your order.

Foreign Xchange boasts the best rates in the Australian foreign exchange industry.

In addition, it is regulated by AUSTRAC. It has responsive customer service that has satisfied the money exchange needs of over 35,000 customers.

 

Conclusions

The long-term trend analysts predict that the AUD and GBP forex pair can be excellent for position traders.

GBP / Australian Dollar trading looks like a wiser decision when considering the current market trends.

On the other hand, the strong volatility of the GBP Australian Dollar exchange rate is ideally suited for short-term traders, including those who love to do day trading.

Note, however, that the rate depends on the trading platform you choose. FYI, Foreign Xchange has one of the best rates anywhere.

You can use the currency converter to see the current rate in real-time, exchange currencies and have it delivered to you in four different options.

Start trading GBP/AUD now!

Risk Warning and Disclaimer: This article does not constitute personal investment advice. Trading in derivatives, in general, involves a high level of risk and is therefore not suitable for every investor. All financial products carry a high risk to your capital. A high risk of loss offsets profit opportunities. By trading in such financial products, you may lose some of your investment. Before you begin trading, you should carefully consider your investment goals, financial circumstances, needs, level of experience and expertise. If necessary, seek advice from a financial advisor.

2024-05-24T06:16:37+00:00