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.
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.
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
Key factors impacting the Australian Dollar and British Pound
There are several factors that impact the AUD to GBP forecast, such as:
The recovery of the pound. 2022 was a turbulent year for the UK, with the country experiencing a debt crisis and swapping prime ministers at breakneck speed. However, since Rishi Sunak took office, the economy has stabilised and the pound has risen in value.
High interest rates in the UK. In August 2023, the Bank of England raised interest rates for the 13th consecutive time, to 5.25% but chose to pause in September. While Australia has also experienced plenty of rate rises, the Reserve Bank's official cash rate of 4.10% is significantly lower. This has attracted investment away from the Aussie dollar and towards the pound.
Commodity prices. Australia's economy is heavily reliant on commodities exports, so increasing or falling commodity prices can have a big impact on the value of the dollar. And with China's slow economic recovery restricting demand for exports like iron ore, this has put downward pressure on the dollar. However, a strengthening Chinese economy could be good news for the dollar's value in the future.
Russia's invasion of Ukraine. With Russia's ongoing war in Ukraine driving up energy prices, economic growth in the UK is expected to remain slow in 2023.
The best time to exchange AUD to GBP
The best time to exchange AUD to GBP is when the exchange rate is near a high over a 3-5 year period. Even if you monitor financial news closely, it's still difficult to predict future exchange rate movements. If you need to exchange money, it's 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.
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 0.50 and 0.54 GBP by the end of 2023.
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.
What are the best options for sending or receiving a large amount of money overseas? Read this $50,000 case study with exchange rates and fees comparison.
Send an international money transfer to someone without a bank account. Get it there instantly and they can pick it up in person, in cash. Get quotes now.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
