Live and Historical GBP/AUD Rates
This chart represents the value of the British Pound against the Australian Dollar – the number of Australian dollars required to buy one pound. Both are considered major currencies, though the pair is not. The pound depreciated against the Aussie dollar
The British Pound
The British Pound (GBP) is the oldest currency still in modern use and one of the currencies with the highest value. It is the third largest reserve currency and the fourth most traded. It has been floating since 1971 and thus far, the UK has been strongly resistant to adopting the Euro despite membership in the EU. Beginning in 2008, the pound experienced several years of deflation-some of the fastest in history for a rich nation. The primary exports in the UK are manufactured goods and other highly processed products. Primary trade partners include the US, Germany, the Netherlands, France, and Ireland.
The Australian Dollar
The Australian Dollar (AUD) was introduced in the 1966 and initially pegged to the pound, but soon after to the dollar. In 1983, the Aussie dollar floated and has typically run just below the US dollar. It is the sixth most traded currency with 3.3% of daily forex turnover. With a stable economy and political system, high interest rates, and a market relatively free from government intervention, the Aussie dollar is a popular carry currency. It also provides independence from the other industrialized nations while giving access to Asia and commodities. The primary industries are metals, mining, and agriculture, and the major export partners are Japan, China, South Korea, and India.
Because of colonization, the UK and Australia have a historic tie, but largely independent economies because of their geographic separation. The two economies focus on very different sectors with heavy reliance on manufacturing and finance in the UK and commodities or raw materials in Australia. In addition, the UK trades primarily with Eurozone nations or the US, while Australia has primary relationships with Asian economies. Therefore, the pair reflects changes in all of these spheres. The value of the Aussie dollar rises quickly against the pound with commodity booms, rising mineral prices, and financial or manufacturing recessions. Therefore, the pair is a popular counter for major global trends within industrialized nations.