The 2020 AUD/GBP Forecasts From Australia's Biggest Banks
In 2020, bank predictions for the AUDGBP are consistent. Most bank analysts expect more of the same - a weaker British Pound versus the Australian Dollar.
The AUD GBP exchange rate has been on a roller coaster ride ever since "Brexit" was voted for and announced in June 2016. The GBP saw massive falls in 2016, only to gradually rise in 2017, before tumbling down again in 2018/2019 and now falling even further due to coronavirus.
With a record 20.4% drop in UK's gross domestic product (GDP) in the second quarter (April to June) 2020, the UK is officially in recession for the first time in 11 years. This is why the pound sterling remains relatively weak compared to the Australian dollar.
Check today's AUDGBP Forex Rate: Currency Converter and Graph
How will coronavirus affect global exchange rates?
Uncertainty from the coronavirus pandemic increases volatility in currency markets including the EUR and GBP. Generally, safe-haven currencies like the USD, CHF, and JPY will likely move higher. However, commodity currencies such as the AUD, NZD, CAD and ZAR exchange rates will likely fall. What's happening now is the USD is falling.
This could mean that confidence may be returning for the global economic outlook. However, a faltering recovery from the ongoing threat of coronavirus will continue to create sharp moves in currency crosses like the Australian Dollar to the Pound Sterling exchange rate.
AUD to GBP Long Term Forecasts Summary
We know what the banks are predicting for the AUDGBP in 2020, but what do they think will happen in 2021? It looks like the AUD/GBP trend is generally expected to rise.
For the latest look at these forecasts, read our AUD to GBP Forecasts for 2021.
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GBP to AUD Bank Forecast
To convert from GBP to AUD all you need to do is divide 1 by the rate.
For example, if the AUD to GBP exchange rate is 0.55, then 1 Australian dollar is worth £0.55 Pence. You divide 1 by 0.55 to find the GBP AUD exchange rate of 1.8181. In this example, £1.00 Pound Sterling is equivalent to $1.8181 Australian dollars.
To save you time, we calculated the "Big 4" bank GBPAUD forecasts for you in the table below:
Bank GBPAUD exchange rate forecast
Where to find the best AUD to GBP exchange rates
Compare exchange rates from Australian banks and foreign exchange leaders.
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AUD to GBP
Where to find the best AUDGBP cash rate
In Australia, the best cash rates are found in major cities. We regularly check the main money changers in each CBD to find out the best exchange rates in town.
How to track down the best cash rate
You can either walk around to each money changer, try and call each one and check their rate or you can use our city and suburb guides:
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What is the AUDGBP?
The AUDGBP pair tells you how many British pounds are needed to purchase one Australian dollar.
The British Pound is also known as the 'British Pound Sterling'. The pound ranks number 4 behind the US dollar, the Euro, and the Japanese Yen, for the worlds most traded currency.
Does the AUDEUR exchange rate change a lot?
Like most currencies, the Australian dollar exchange rate and the EUR exchange rate can be highly volatile.
That’s why it’s popular with traders and why it’s important to consider hedging if you're transferring money overseas.
AUD/GBP forecasts can also change drastically, in response to significant currency moves. Many exchange companies or money transfer services offer rate alerts online to help you get the best AUDGBP cross rate.
Is the AUDGBP rising?
Yes. The Aussie dollar is relatively stronger than the GBP, which makes the rate go higher. There are many factors that influence this relationship, but here are some of the main ones:
- Coronavirus: Uncertainty from the coronavirus pandemic increases volatility in currency markets including the AUD and GBP.
- Australian dollar currency (USD): When the AUD rises, the GBP falls. This is because the AUDGBP is a currency pair. The Australian dollar is on a rising trend compared to the British Pound, which is staying low.
- Weak UK economy: The UK has crashed into into deepest recession of any major economy according to the news. UK economic output slumped by 20.4% in the second quarter of 2020, the worst levels since quarterly records began in 1955. What does this mean? A weaker GBP exchange rate relative to the Australian dollar will make the AUDGBP rate rise.
- Brexit: The UK is in a period of uncertainty while Brexit is being finalised. This year it has been delayed due to coronavirus, but the UK is hopeful of a deal sooner rather than later. A Brexit deal is important for trade, with EU being the UK largest trading partner. The more this drags on, the greater uncertainty and the weaker the pound.
- US-China trade war: US President Donald Trump still has tariffs on Chinese imports. In January both countries agreed to ease restrictions imposed on imported goods from each another. However, relations have become increasingly strained in the last six months over a wide range of issues. If China's economy gets negatively impacted, demand for goods from the UK and Australia could also slump. Both the AUD and GBP falls as a result.
How do I forecast the AUDGBP exchange rate?
Investors forecast the movement of the Australian dollar as it relates to the British Pound, by looking at key influences including:
- Currencies - Australian dollar forecasts, GBP forecasts, and US dollar forecasts
- Central banks - namely the Reserve Bank of Australia (RBA) and Governor Philip Lowe, and US Federal Reserve (the Fed or FRB) and Chairman Jerome Powell, Bank of England (BOE) and Governor Mark Joseph Carney
- Interest rates - linked with central banks that control interest rates and monetary policy. Investors predict how central bank announcements - like interest rate cuts or hikes - will affect interest rate spreads.
- Local governments - Australian Government and Prime Minister Scott Morrisson, US Government and President Trump, UK's Brexit and Prime Minister Boris Johnson
Australian Economic Data - Economic growth indicators (GDP), Inflation (CPI Core Price Index, PPI Production Price Index), Trade balance (balance between exports and imports of total goods and services)
- UK Economic Data - GDP, trade balance and inflation
- US Economic Data - GDP, trade balance and inflation
- China (plus Hong Kong, Singapore, and rest of Asia) Economic Data - GDP, trade balance and inflation
- Commodity Prices - raw materials like iron ore for Australia and processed goods like cars and petroleum products are a big exports for the UK
Should I trust bank AUDGBP forecasts?
The Australian Dollar and British Pound exchange rates can change a lot. So while banks have experts that spend long hours modelling future currency moves, there may be factors that aren't predicted.
Multiple factors influence currency movements that are both local and global. Plus, major bank forecasts are generated with a combination of computer modelling and human influence.
We think it's better to look at exchange rate forecasts as a guide. We also recommend you don't make your financial decisions based solely on bank forecasts, but rather, take into account your personal objectives, financial situation and needs.