The close financial connection between Great Britain and Australia gets apparent through the GBPAUD forex index. It is the index showing the daily equivalency of the British Pound to the Australian Dollar. Even though these countries are two leading Western economies, they follow different Central Bank interest rates strategies.

What is GBPAUD?

The GBPAUD index is forged through the London and Sydney stock markets and has to do with a direct trade of the two major currencies, the British Pound and the Australian Dollar. Traders willing to learn how to trade GBPAUD can start with a demo account available on the SimpleFX platform.

Even though Australia has been a British Colony since the 1950s, it has adopted the Australian Dollar to declare independence from the Chancellor of the British Crown. So, the equivalency between the two currencies shows a lot of fluctuations throughout the years and has been a major level of potential losses.

How Does the GBPAUD Market Work?

The GBPAUD forex market works with bids in two independent currency trading platforms in London and Sydney. They work together to present unanimous numbers to investors and the rest of the world. This relationship is essential for everybody eager to learn how to invest in GBPAUD.

The ups and downs of this forex index show the different approaches to monetary expansion that Australia and Britain decide to follow each year. The roaring Australian economy may seem weak when the British Pound becomes more expensive. However, Australians can benefit from many working positions and greater exports to Britain whenever their currency depreciates against the British Pound.

GBPAUD price history

2018

During 2018 there was a stable depreciation for the Australian Dollar, close to the area of 1.85 AUD per 1 British Pound. Even though the economic growth in Britain wasn't strong enough, the trade deficit between the two countries created discrepancies in the forex index.

2019

2019 was a year when the Bank of England decided to raise interest rates. That year the ten-year yield for British government bonds was relatively lower. That is why the forex index of GBPAUD was close to 1.95 Australian Dollars per 1 British pound.

2020

During 2020 the British economy returned to recession, and that was reflected in the forex GBPAUD index. The index was close to the average of 1.82 Australian Dollars per 1 British pound. As the Bank of England insisted on increasing the quarterly overnight rates, people invested in the British Pound and supported its economy against the Australian Dollar.

2021

The Australian economy showed signs of a rebound after several years of stagnation. That's why the GBPAUD was close to 1.72 Australian Dollars for 1 British pound. Investors who had some put options for the lowering of the index could make a lot of money during the course of 2021.

2022

2022 was a stabilization year for both the British and the Australian economy. We have seen the forex index GBPAUD increase to the level of 1.80 Australian Dollars for 1 British Pound. That created a strong move toward the Australian Dollar as inflation kept going up in the country. The central bank was forced to increase the overnight interest rates, and that created a strong flow to the Australian Dollar depicted in the forex index we study here.

Current GBPAUD price

The current GBPAUD price is subject to fluctuation due to the volatility of the forex market. Investors can check it on the chart or the SimpleFX Webtrader platform.

Is GBPAUD a good investment?

Whether GBPAUD is a good investment depends on factors such as interest rates, monetary policies, geopolitical events, etc. The answer depends on analyzing these factors and the potential returns on investment. If the factors are also stable and there are more chances of return, this currency pair brings more interest from investors eager to learn how to invest in forex worldwide.

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