The Australian Dollar has dropped considerably this year against Sterling by as much as 35 cents from the high to low during 2013. With a number of interest rate cuts by the Reserve Bank of Australia and with recent RBA comments that there could be room for monetary intervention we could see a further weakening for the Aussie as we end of the year. Indeed, the Australian economy is heavily reliant on the growth in China which has slowed this year. China buys a huge amount of natural resources from Australia and if they continue to slowdown we could see problems ahead for Australian growth.
This week we have seen GBP AUD exchange rates hit 1.80+ a number of times but it has yet to really break through this large level of resistance. Even the figures out form the UK regarding the NIESR data which confirmed UK GDP at 0.8% yesterday did little to push the Pound up against the Aussie. Could this be the opportunity for the Aussie to stay at these levels for a few days before we break through 1.81. Personally, I feel there is further room for Sterling strength against the Australian Dollar so you may wish to take advantage of these current exchange rates if you’re selling Australian Dollars.
The Kiwi Dollar has also weakened recently and could hit 2 to the Pound again soon and with an interest rate decision later tonight if there is a rate cut we could also see a huge sell off from riskier currencies which would include the AUD.
There is a lot of employment data due for tomorrow down under which if negative is likely to weaken the Australian Dollar.
If you want to make sure you’re getting a better exchange rate than your bank please contact me directly for a free quote Tom Holian firstname.lastname@example.org
This year we have seen the Aussie as one of the biggest losers on the currency markets. Many had been expecting this for sometime claiming the Aussie was ridiculously overvalued. Where next will rates go on the Australian dollar?
Making currency prediction is an extremely difficult thing and no one can tell you exactly what will happen. What we can expect in the future however can be determined from assessing the current trend. Reading between the lines it appears to me that the Australian economy is on the back foot and that in the future the RBA (Reserve Bank of Australia) will seek to weaken the Australian currency as they have recently.
It is worth remembering the Australian currency was historically much, much weaker and current selling rates remain very favourable.
If you would like more information on the future direction of rates and what to be considering if moving funds, please contact me Jonathan directly on email@example.com
GBPAUD exchange rates have hit 4-year highs recently as a number of interest rates cuts and negative comments from the RBA have taken effect. Earlier this week another comment from a senior banker down under claimed there is room for fiscal intervention in order to weaken the currency to keep exports competitive.
Poor GDP earlier this week has not helped the AUD and this give further rise for the need of another rate cut. This could weaken the Aussie further going into 2014. Depending on the news from the US tomorrow this could cause further Aussie weakness if the US jobs data is weaker than expected.
With GBPAUD rates having touched 1.81 and dropping marginally down this afternoon following the UK’s Autumns Statement and some good news on US GDP this was part of the reason for the Aussie’s minor fightback this afternoon.
If you would like to take advantage of current rates and to protect yourself against adverse market movement you may wish to lock into a forward contract which allows you to eliminate the risk of the currency markets moving further against you. For a free quote or an explanation as to how to save money when buying or selling Australian Dollars then feel free to contact me directly Tom Holian firstname.lastname@example.org
GBP/AUD exchange rates through 1.81 following poor GDP data in Australia, will the trend continue? (Mike Vaughan)
Sterling pushed through the 1.81 barrier this morning, bringing GBP/AUD to its highest levels since February 2010 – but will this trend continue? Overnight Australian GDP data was released showing a disappointing result of 0.6% down from the expected 0.6%. This has brought the shift in Sterling to just shy of 8% against the Aussie since the end of October – a pretty good return in anyone’s eyes. For me there is a chance that this run will continue, but I would also urge AUD buyers to consider these gains and view the opportunities currently available.
Looking at the data for the rest of the week watch out for employment figures from the US at 12:15 today and the important non-farm payroll figures at 13:30 on Friday. Any improvement and I would expect further losses for the AUD as this shifts the likelihood of the FED tapering QE a little bit closer, a situation that is likely to bad news for AUD exchange rates. Also watch out for the Bank of England interest rate decision tomorrow at 12.00, expect to see no change which shouldn’t affect rates significantly but still one to keep an eye on.
As with making any financial decision it is always best to get as much information about the product and the service on offer. As a specialist execution only currency broker we pride ourselves on our
efficient, client friendly service and most importantly our price. When using a broker rates can be significantly better than high street banks and other financial institutions. To find out more about the service please contact 01494 787478 or email me with a brief overview of your particular requirement and I will happily provide further insight into current market conditions and the contract that may work best for you. Email Mike on email@example.com
Best rates for buying the Aussie Dollar as they keep interest rates on hold. Weakening of the Aussie Dollar could just well continue. (Ben Amrany)
The Reserve Bank of Australia held their base rate of interest at 2.5% last night but stated they were still concerned about the strength of the Aussie Dollar. This is the fourth month in a row that interest rates have been left unchanged and they stated that growth has been below trend and medium-term inflation was on target, while the Australian dollar was still ‘uncomfortably high’.
With regard to foreign exchange markets, Stevens continued to show concern over the Aussie dollar’s strength.
“The Australian dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy,” Stevens repeated.
For those of you selling the AUD to buy the pound, Euro and US Dollar this is a warning that although the Aussie Dollar has significantly weakened and there may be further declines around the corner next year. The Tones of the RBA have continued to state they want a weaker currency so those of you holding off to see the currency strengthen to levels of just a few months ago may be left extremely disappointed.
I feel it is unlikely you will see the rates move significantly in your favour and if you do need to sell the Aussie Dollar over the coming months you may be better off trading now on a forward contract to minimise your risk to the markets.
All you can do is make an educated guess as to where you feel the market will go by looking at all the information available. By next year the rate may just be 10% worse than where we are currently at.
If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at firstname.lastname@example.org
Surely it is only a matter of days before we go above 1.80 on GBPAUD? As predicted by many of the authors on this site over the last few months rates were bound to rise due to GBP strength and AUD weakness. And I can say with a high level of confidence that they will probably get worse. We have already heard dovish comments from RBA members indicating the weakness of the Aussie is a target for them. They want a weaker Aussie to help boost exports and help the economy.
As China slows down and the mining ‘boom’ of the last few years starts to slow the outlook is without doubt yet higher rates. AUD sellers in the future may do well to take stock of current rates bearing in mind levels used to be at more than 2.
Luckily there are options in such a market. We can forward fix an exchange rate to limit your losses. If you are selling a property in the future in Australia speak to me on email@example.com for more info!