Daily Archives: July 10, 2012

GBPAUD hits 4 month low

July 10, 2012   Australian Dollar Forecast, Best Rates, GBP to AUD

Australian Dollar Forecast Best Rates GBP to AUD Buying Australian Dollars with Pounds

The GBPAUD exchange rate has hit a 4 month low of 1.5151 this afternoon as problems persist in the UK. Some forecasters are claiming that second quarter UK GDP will show a reduction of -0.2% which will keep the UK in recession. Further with the LIBOR scandal in the headlines investors are seemingly hesitant with the Pound. Also with GBPEUR exchange rates hitting close to 4 year highs and EURUSD the lowest for two years we are seeing possible signs that carry trading is affecting the exchange rates. This is whereby investors borrow money is a low yielding currency such as the Euro and place it into the Australian Dollar which will provide a better rate of return.

As the Reserve Bank of Australia kept interest rates on hold last week we could see further strengthening for the AUD until a tighter monetary policy is implemented. Also, as the UK decided to go ahead with further QE of £50bn Sterling has lost its appeal at least for the time being. With iron ore and coal exports till performing well fuelled by Chinese demand and growth this has seen the AUDUSD rate touch close to the highest level is almost 30 years. If you have a need to transfer Australian Dollars and want to compare exchange rates against your currency broker please contact me Tom Holian teh@currencies.co.uk

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Busy week for the currency market, what can we expect for the Australian Dollar?

July 10, 2012   AUD to GBP, Australian Dollar Forecast, Australian Dollar Strength, Best Rates, GBP to AUD

This week is a very busy week for the Australian Dollar with consumer confidence figures overnight and unemployment figures due overnight tomorrow. Unemployment figures in particular are expected to show a small increase from last month and this may lead to some early morning losses for the Australian Dollar. Other data releases to be aware of will be GDP data released from China overnight of the 13th, with the Australian economy benefiting from recent high growth figures within China (China is a net importer of raw materials from Australia) any sign of the output slowing in China can have a negative affect on the value of the Aussie. Figures are expected to show a contraction month on month from 8.2% to 7.9% and I would again expect the value of the AUD to fall following this release. Those looking to buy AUD may look to see the outcome of this release as there could well be a short term spike later this week, likewise any AUD sellers should be wary.

As a specialist currency broker we have a number of tools available to maximise your currency conversion, ranging from standard spot contracts, to forward options, and limit and stop/loss orders. To run through how each contract works and to discuss current market conditions and how this may affect your particular exchange then please email Mike at mgv@currencies.co.uk or call 01494 787478.

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