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Trading GBP/AUD

Written By

Jemma Grist

Written By

Jemma Grist

Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.

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Edited By

Tobias Robinson

Edited By

Tobias Robinson

Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.

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Fact Checked By

William Berg

Fact Checked By

William Berg

William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.

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Updated

Sep 13, 2024

The GBP/AUD is an interesting currency pair for forex trading, offering high liquidity and volatility. Making accurate predictions about the exchange rate requires understanding live chart setups and keeping an eye on the news. Here we review the pair and cover why the GBP/AUD FX rate fluctuates, how to use graph data to perform technical analysis and the history of the currencies. We also list the best GBP/AUD brokers in 2024.

Live Chart

Why Trade GBP/AUD?

Many traders opt to buy or sell GBP/AUD each day, and there are several reasons to do so:

• Volatility – Price chart movement can be significant with this pair, and the spot rate can change with little notice. Experienced investors closely monitoring the live exchange rate can use this to their advantage and gain pips from the effect on spread values.
• Diversification – Choosing to trade on a non-major pair (i.e., without USD) allows forex investors to branch out and utilize distinct strategies to turn a profit.
• Range of financial instruments – The volume of the forex market is extensive. Thus investors can trade the GBP/AUD through many vehicles, including CFDs, options, and futures.
• Accessibility of information – GBP/AUD historical data is now freely available, and this makes investing straightforward. Traders can analyse 5, 10, or 20-year long-term charts or look at market sentiment over the last 7 days easily. Commentary and discussion forums also help new forex players make buy or sell decisions.

Risks Of Trading GBP/AUD

• Volatility – The large and sometimes unpredictable price changes in GBP/AUD can be difficult for beginners. And relying on a live currency rate forecast may not be enough to ensure success. Technical knowledge, such as pivot points and support/resistance levels, can prove key for achieving profits on volatile pairs.
• Complicated technical analysis – In today’s climate, GBP/AUD dollar investors regularly use complex conversion tools and indicators, for example, Elliott Wave analysis, to make long-term forecasts or projections for next week. Traders often have to be proficient in using chart analysis to compete against professionals and institutions who operate in the same market.
• Algorithmic trading bots – Using programs that provide automated GBP/AUD trading is now a common strategy, and so investors working manually must respond rapidly to market changes to stay competitive.

Factors Affecting GBP/AUD Price

To make an accurate GBP/AUD trend prediction for today or forecast for 2024 and beyond, it is important to understand how price is affected by economics and local events:

• Commodity exportation – Australia is a huge exporter of products such as iron ore, coal, natural gas, and gold. As such, commodity prices influence the strength of the Australian dollar and thus the GBP vs. AUD.
• Central bank monetary policy – Interest rates set by central institutions, along with any policy announcements, heavily affect the GBP/AUD outlook.
• Economic performance – The average exchange rate is likely to shift when economic growth is greater in one country, as this strengthens its currency.

We can see a mix of events that have impacted GBP/AUD. In May 2022, for example, the GBP was losing ground because of higher oil prices, inflation rates, and the Russian-Ukrainian war.

The Australian economy is also heavily based on commodities, and an increase in oil prices is beneficial. At the same time, because of its geographical position, it is less influenced by the Russia-Ukraine war. In contrast, the UK has a 9% inflation rate, which has negatively impacted consumer purchasing power. This makes the AUD a safer investment in the eyes of traders, hence why the GBP has been losing value.

Linked Currency Pairs

In addition to the influences already outlined, GBP/AUD followers can use the behavior of other currency pairs to provide real-time trading signals and ideas. This is because many pairs are correlated, and the price movement in one set can result in either change in the same direction (positive correlation) or opposite direction (negative correlation) in the other set:

• EUR/AUD – Traders may commonly see a positive correlation between the prices of GBP/AUD and this FX pair
• AUD/USD – Prices for this currency pair are usually the reverse of the movements seen in GBP/AUD

GBP/AUD Trading Strategy Considerations

Forex traders today need to know the pip value of the currencies they are working with, but above that must be aware of world events and use all available data to their advantage.

Trade

There is a long history of trade between the UK and Australia. The UK is Australia’s ninth largest two-way trading partner and the second-largest source of foreign investment in the country.

The pound had been a unit of currency since the 8th century and became a free-floating currency in 1971. The Australian pound was replaced by the dollar in 1966, which was then floated in 1983.

The highest rate for exchanging GBP into AUD dollars was recorded at 2.96 in August 2002, when the UK’s financial sector was buoyant and its economy robust. The GBP v AUD dollars price fell to its lowest rate of 1.36 in January 1985, when the AUD was strongest.

Historical Data

Investors in GBP to AUD can review historical data. Traders can track price changes across a range of time periods, for example, data from yesterday, the last 6 or 12 months, or even a 5-year history. Many clients choose to view this information on candlestick charts, which clearly depicts any movement information and can be used to visualize potential trends going forward.

News

Political and world events can greatly impact the GBP v AUD exchange rate, so traders should stay up to date with breaking news in respective countries and the knock-on impact on currencies. Local news, such as the BBC in the UK, offer real-time access to live announcements.

Brokers

Many firms offer GBP against AUD for forex trading, including IG and Oanda. Online brokers have different trading platforms (like MT4) that offer various tools and analytical capabilities. TradingView, DailyFX, Reuters, and Yahoo Finance are also popular choices for GBP to AUD research. They provide weekly outlooks, monthly averages, mid-market rate information, and interactive charts. Banks like HSBC, Westpac, and Interbank can also be useful resources of live graphs for exchange rates over time.

Forecasts

Many GBP vs. AUD investors use long-term FX forecasts to inform their strategy – for example, a graph of 10 years may calculate a trend of annual fluctuations and thus when a large investment might be appropriate. Equally, a GBP to AUD money 5-year forecast can display a medium-range mood and might predict the average rate over this period. These sentiment tools can also be used more close range, for example, for the week ahead or today.

Role Of GBP

The GBP is the oldest and fourth most traded currency in the forex space. The US dollar, and to a lesser extent, the euro, are considered the world’s unofficial reserve currencies. However, the pound is also held in reserve along with the Swiss franc and Japanese yen, indicating the important role it plays in the world economy.

Note, the Russia-Ukraine war, high oil prices, and inflation rates have recently negatively impacted the GBP.

Role Of AUD

The AUD follows the GBP as the fifth most traded currency in the forex market. With Australia being a key exporter, its rate is strongly influenced by commodity prices. It has close proximity to Asian economies, especially China, with its booming manufacturing sector and high requirement for resources. The AUD rate is heavily dependent on the degree of manufacturing output from these regions.

Final Word On Trading GBP/AUD

Forex investors trading GBP/AUD enjoy a volatile currency outside of the major pairs. Traders can use live exchange rate charts and technical analysis to make the most profit from this pair. Investors can also benefit from monitoring market news to pre-empt events that could affect the rate of GBP vs. AUD.

FAQs

How Do I Start Trading The GBP/AUD?

Investors will need to open a trading account with a forex broker to start buying and selling the currency pair. Look for a provider with tight spreads, leveraged trading opportunities, and user-friendly analysis tools.

Is GBP Going Up Or Down Vs. The AUD?

Rates are affected by many factors and can move rapidly, so be sure to check the most up-to-date news outlets and live charts for forecasts. Most top forex brokers offer a range of real-time trading tools.

Why Is The GBP Weak Against The AUD?

Like many economies, the UK has been affected by inflation, high oil prices, and the Russian-Ukrainian war. Even though it is not part of the EU, the UK’s pound is influenced by political events in Europe.

Is AUD Getting Stronger Against The GBP?

The GBP/AUD exchange rate fluctuates daily. With that said, because it is a commodity currency, higher oil prices have helped the AUD rise.

Is It A Good Time To Buy GBP/AUD?

Although the value of the AUD has been rising against a number of big currencies in recent years, geopolitical events and changes to commodity exports in Australia can impact the strength of the currencies. Conduct your own research before you take a position.

Where Can I find AUD GBP 10 Year History?

You can find a GBP to AUD graph for 5 years, 10 years, or even 20 years at various online sources. Try your broker first – many trading platforms have their own integrated historical charts. Another good option is TradingView.