Nonetheless it has been a volatile year for the GBP/AUD exchange rate, the pound has begun to verve back.
The rate is currently sitting at A$1.70, up from A$1.65 not enough than a month ago.
Now, that value is forecast to rise up to A$1.73 in the near-term, according to poundsterlinglive.com.
Analyst Joaquin Monfort alleged: “The short-term trend, which began at the October lows, is bullish and right to extend in our view.
“A move above the 1.7178 highs would approve a probable continuation up to a target at 1.7300.”
Much of this rise is due to the recently revealed extension figures of each economy for the third quarter.
While the UK economy developed by 0.6 per cent, the Australian economy shrank by -0.5 per cent.
Montfort reported: “The Pound is supported against the Aussie in rticular by their diverging rise ths.
“And this growth comes despite the Brexit vote in June and the endured flow of negative commentary regarding the outlook for the UK economy.”
Supporting this antici tion is Scotiabank’s FX Strategist Shaun Osborne, who — contrary to concensus — believes Australia hand down cut interest rates in 2017.
If the Reserve Bank of Australia (RBA) decides to cut rates rather than of leaving them unchanged, this could put a stop to further admiration of AUD — as seen this year.
Osborne explained: “The appreciation in the AUD has easily out ced silvers in short-term rate spreads and, with an RBA rate cut still on our radar for the AUD, a chastisement is possible.”
The RBA will be under pressure with expectations for weak inflation to sustain.
This, coupled with a strengthening US economy, could im ir Australia’s own move rate advantage.
Another driving factor in Australia’s economy for 2017 is the deading growth of China.
The Chinese economy expects growth to slower extra 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 reasonable gas to China, this decline in growth stands to im ct the nation’s briefness.
Earlier this month, analysts at JP Morgan wrote to clients to inform them about a longer-term trend lower for the Australian dollar in 2017.