The 2020 AUD/GBP Forecasts From Australia's Biggest Banks
In 2020, bank predictions for the AUDGBP are divided. Some forecast the AUD to be relatively weaker than the GBP. Others expect more of the same - a weaker British Pound versus the Australian Dollar. With the coronavirus pandemic in full force globally, all predictions will be inaccurate.
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 in 2020.
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.
AUD to GBP Long Term Forecasts Summary
- ANZ predicts the AUDGBP exchange rate will end 2020 at 0.5150
- CBA expects AUDGBP to be 0.5690 by December 2020
- NAB's AUDGBP forecast shows the exchange rate to be 0.5100 at the end of 2020
- Westpac predicts the AUDGBP rate to be 0.5115 by December 2020
Where to find the best AUD to GBP exchange rates
Compare exchange rates from Australian banks and foreign exchange leaders.
You don't like getting ripped off. So why are you ok with paying exorbitant fees and rates on currency conversions? You shouldn't be.
At The Currency Shop we help you compare providers to find the best exchange rates and lowest fees right now. Leaving you more time and energy to conquer the world.
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
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?
Hard to tell. The Aussie dollar is relatively less weak than the GBP, which makes the rate slightly higher, but both currencies are falling. There are many factors that influence this relationship, but here are some of the main ones:
- Australian dollar currency (USD): When the AUD rises, the GBP falls. This is because the AUDGBP is a currency pair. The Australian dollar has been falling relatively less than the British Pound since the beginning of 2019.
- Weak UK economy: The UK has experienced negative GDP growth so far this year and if data shows UK economic growth declining again, it will officially be in recession. What does this mean? A weaker GBP exchange rate relative to the Australian dollar rate, which makes the AUDGBP rise.
- Brexit: The UK is in a period of uncertainty while Brexit is being finalised. A Brexit deal is important for trade, with EU being the UK largest trading partner. Prime Minister Boris Johnson has been pushing for a 'no deal Brexit' which is negative for trade. Greater uncertainty leads to a weaker GBP relative to the Australian dollar.
- US-China trade war: US President Donald Trump is threatening to increase tariffs on Chinese imports. This is a key reason why China's growth is slowing and is importing less from the UK. 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.
Where can I find out more about AUDGBP?
AUD to GBP Exchange Rate Calculator
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:
General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.