The banks predict the AUD/GBP exchange rate will be between 0.54-0.59 by the end of 2024
There is no guaranteed best time to exchange currency, and using an averaging strategy might be your best bet
Currency brokers can help you lock in an exchange rate ahead of time
What is the AUD to GBP forecast for 2024? Will the Aussie dollar recover against the British pound or is it set to weaken again during 2024? We take a closer look at the key factors impacting the AUD/GBP exchange rate and include predictions from the big four banks.
AUD vs GBP forecast for 2024
NAB predicts the AUD will hold steady against the GBP in the first six months of 2024 and increase modestly to 0.54 GBP by December 2024.
ING believes the Australian dollar is the most undervalued undervalued currency in the G10 and expects it to make a strong recovery against the British Pound.
In April 2023, Commonwealth Bank predicted the dollar to trade at 0.55 GBP by the end of 2023, then climb to 0.59 GBP by the end of 2024.
Meanwhile, in its July 2023 Market Outlook, Westpac forecast a rate of 1 AUD = 0.54 GBP by December 2023.
Westpac also expects the Aussie dollar to climb slightly against the pound in 2024, reaching 0.57 GBP by December of that year.
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Finder survey: Are Australians of different ages worried about a weak Australian dollar?
Response
75+ yrs
65-74 yrs
55-64 yrs
45-54 yrs
35-44 yrs
25-34 yrs
18-24 yrs
No
62.07%
50.29%
43.02%
39.9%
40.1%
37.61%
38.14%
Yes
37.93%
49.71%
56.98%
60.1%
59.9%
62.39%
61.86%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
What is the best time to exchange AUD to GBP?
The best time to exchange AUD to GBP is when the dollar is buying more pounds. For example, if the Australian dollar is worth 0.50 GBP, you'll get more pounds for your money than you would if it then drops to being worth 0.40 GBP.
Of course, even if you monitor financial news closely, it's difficult to correctly predict future exchange rate movements and even the experts struggle to do so consistently.
If you need to exchange money for an upcoming trip or overseas purchase, it may be best to employ a dollar-cost averaging approach. This means converting your currency in multiple transactions over a longer period of time.
Say you want to convert $1,000 into pounds, Instead of converting it in one lump sum, you split it into 10 separate $100 transactions, which you schedule over time.
This means you'll get the average exchange rate for that period and protect yourself from any big fluctuations in the exchange rate. Just be careful you're not paying a flat service fee each time you convert, as this could make it more expensive.
It could also be worth using a foreign exchange specialist that can provide expert advice on when to exchange currencies to get the best rate.
If you need to send a large money transfer from Australia to the UK, it's also a good idea to choose a currency broker.
Some providers offer forward contracts, which allow you to get an exchange rate today for a transfer that will be sent 12 months or more in the future. Alternatively, you could use a limit order to ensure that your transfer is sent automatically as soon as your desired exchange rate is achieved.
AUD performance recap
2023 wasn't a great year for the Aussie dollar as it fell in value against most major currencies, including the British Pound and the US dollar. Higher interest rates elsewhere around the world attracted investment out of Australia, while China's weak economic recovery has also driven the dollar down.
2022 was a turbulent year for the GBP. Following the country's debt crisis and the short-lived tenure of Liz Truss, the pound plummeted to historic lows in 2022, almost reaching parity with the US dollar in September 2022. At the same time, 1 AUD reached a high of 0.60 GBP.
But the pound experienced a bounce back during 2023, driven by interest rate rises and conservative fiscal policy. The Australian Dollar reached a low of 0.50–0.51 GBP in August 2023 but mounted a small recovery towards the end of 2023.
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The Aussie dollar has fallen against the British Pound as Australia's interest rates are lower than in the UK and US. Investors have been drawn away from the Australian Dollar. China's weaker than expected economic recovery following the COVID-19 pandemic has also put downward pressure on the dollar, while conservative economic policies in the UK have helped the pound rebound after the debt crisis in 2022.
Expert forecasts for the AUD/GBP rate through the end of 2023 and into 2024 are cautiously optimistic, with the rate expected to hold steady or climb slightly. Predictions from NAB, Commonwealth Bank and Westpac have the dollar trading at between 0.54 and 0.59 GBP by the end of 2024.
Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
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