The Australian Dollar has been steadily climbing against the British Pound for the last decade, although the global financial crisis did cause a major setback for the AUD/GBP pairing exchange rate. The lowest point the ‘Aussie’ reached against the Pound in recent years came in October 2008, when the majority of currencies crashed against the US Dollar. Australia wasn’t as badly affected by the global crisis as other countries as it managed to avoid a recession in the technical sense, but as all the markets crashed, so did the AUD/GBP exchange rate. Because of Australia’s trading relationship and close proximity to flourishing China, Australia was able to keep its own economy on a more even keel than other nations. Australia also had a thriving mining industry which experienced a boom during the global economic crisis, keeping demand for commodities up and the Australian Dollar slightly elevated. Furthermore, the nation’s Government was able to increase their stimulus spending due to Australia’s notoriously low public debt figures. In that manner, Australia was able to survive the worst of the great global recession with only minor scratches.
The AUD/GBP exchange rate reached its peak for the past ten years in March 2013, achieving 0.6802, and since then the pairing has been tapering down. The steady rise in the Australian Dollar’s worth was at least partly the result of Australia’s mining boom and China’s position as both Australia’s main trading partner and the world’s second largest economy. However, the bottom has come out of Australia’s mining sector and growth in China has cooled, limiting demand for Australian commodities and restraining the domestic currency.