Finder makes money from featured partners, but editorial opinions are our own.

AUD to GBP forecast

AUD/GBP exchange rate predictions for 2024 and beyond.

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?

Response75+ yrs65-74 yrs55-64 yrs45-54 yrs35-44 yrs25-34 yrs18-24 yrs
No62.07%50.29%43.02%39.9%40.1%37.61%38.14%
Yes37.93%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.

Compare money transfer services

Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
TorFX
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000.
Xe Large Transfers
24 hours
$0
Xe has fast transfers with low fees and a range of foreign currency tools.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Send Payments
24 hours
$0

Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.
Revolut
Within minutes
$0
Send money with great rates and low fees in 30+ currencies.
Xe Money Transfers
Within minutes
$0
Xe has fast transfers with low fees and a range of foreign currency tools.
Instarem
Within minutes
From 0%
50% off first transaction fee from any country in APAC (outside India).
Minimum transfer of $250 and max transfer of $500,000
Wise (TransferWise)
Within minutes
From 0.43%
Wise uses the mid-market rate and transparent fees to help you send money in 50+ currencies.
Remitly
Within minutes
From $0
Remitly has quick, affordable transfers around the world, with both express and economy options.
TorFX
24 hours
$0
TorFX sends money overseas in 40+ currencies, with competitive rates for transfer amounts over $2,000.
SingX
Within minutes
From 0.5%
SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.
CurrencyFair
Within minutes
€3
CurrencyFair has bank-beating exchange rates and fast transfer times on 15+ popular currencies.
MoneyGram
Within minutes
From $1.99
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
WorldRemit
Within minutes
From $0.99
Use promo code 3FREE and pay no fees on your first 3 transfers. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 50+ currencies.
Send Payments
Send Payments
24 hours
$0
Send provides fee-free transfers via its 24/7 multi-currency payments platform with real-time quotes.
Qantas Business Money
Within minutes
$0
Limited time offer: Earn up to 125,000 bonus Qantas Points as a first-time converter. Ends 30 April 2024. Conversion limits and T&Cs apply.
Set up accounts in 11 different currencies and get rewarded for global business payments by earning Qantas Points.
Airwallex
Within minutes
$0
Streamline global payments in 60+ currencies. Send & receive securely in 150+ countries, with fast settlements & competitive rates. Simplify book-keeping & manage everything in one place.
TorFX Business Transfers
24 hours
$0
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.
OFX Business Transfers
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
loading

FAQs

More guides on Finder

Ask a Question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site