What will it take for the pound / dollar rate to improve?

[200bhp]

We're looking to move to Oz in the next 2 years and currently the exchange rate is pretty poor. Whilst I dont expect a return to the 2:1 exchange rate we saw 3-4 years ago any time soon, what will it take for things to improve?

If interest rates go up, will that have an effect?

Not sure at all how these things work!

[RichyBoy]

Possibly our debt and their commodities means its only going one way although I've heard they have a huge housing bubble.

[randomwalk]

The Oz economy has been growing on the mining boom for some years now, providing China growth continues the Oz economy will outperform UK for years to come. As a result the exchange rate is not going to improve against the GBP vs AUD, especially if the Reserve Bank does not drop interest rates. If another major financial crisis like euro meltdown or other shock we would see a drop in the aussie dollar as capital moves into safe havens, however the traditional safe haven of the US dollar does not seem an option no given the debt levels of the US.

I do not see any improvement in the AUD vs GBP exchange rate from a UK perspective, as an aussie now residing here in UK I have found the exchange rate rather helpful.

The housing bubble has been talked about for years in Oz, in Sydney it never seems to burst, just stops advancing for a while.

[ringram]

mean reversion anyone?