Category Archives: GBP to AUD

Sterling vs Australian Dollar Rises as RBA Forecast Interest Rate Cut in February

The pound to Australian dollar exchange rate stands at 1.8853 today. By comparison, yesterday, sterling was as low as 1.8774 versus the so-called Aussie, so it’s since strengthened by 0.42%, or over 0.75 cents.

The GBP to AUD interbank exchange rate has strengthened overnight, in part because the Reserve Bank of Australia (RBA) is being increasingly tipped to cut Australia’s interest rates in the coming weeks. In particular, it’s thought that the RBA may reduce Australia’s borrowing costs from their current 0.75%, down to a new all-time low of 0.5%, at the central bank’s next meeting on February 4th. This is because, for several weeks now, bush fires have ravaged significant parts of Australia’s territory, destroying thousands of homes and costing dozens of lives. So while the authorities seek to control and alleviate this natural disaster, the RBA might cut Australia’s borrowing costs, to support the economy. However, lower interest rates tend to weaken the value of the AUD.

GBP to AUD Higher, Even as UK Inflation Weakens in December

The sterling vs Australian dollar interbank exchange rate has risen, even though the UK’s inflation rose less than forecast in December, according to official statistics released today.

UK price pressures increased by 1.3% last month, said the Office for National Statistics (ONS) today, below forecasts for 1.5%, as well as increasingly below the Bank of England’s (BoE) official target of 2.0%. Low price pressures tend to point to a sluggish economy, so this may affect the value of sterling, looking ahead.

Lower UK Inflation Adds to BoE Case to Cut, Might Impact Sterling

In particular, today’s low UK inflation figures add to the BoE’s mounting case to cut UK interest rates. Since last Thursday, central bank Governor Mark Carney, as well as his colleagues Silvana Tenreyro and Gertjan Vlieghe, have all suggested that they might vote to cut Britain’s borrowing costs, if the economy doesn’t pick up in early 2020.

Already at the BoE’s interest rate decision in November, Michael Saunders and Jonathan Haskell both voted to cut UK borrowing costs.

So if three more members join them, of the BoE’s nine-person Monetary Policy Committee, this raises the possibility that the central bank may lower UK interest rates below their current 0.75%, to 0.5%, in the foreseeable future. This too could impact the pound.

For more pound and AUD news, keep up to date with our daily blogs. Alternatively, if you have a currency requirement you can get in touch on +44 (0)1494 416 503 to discuss these factors in more detail or contact me directly at dcj@currencies.co.uk.

GBP to AUD on Back Foot on Rising Odds of BoE Interest Rate Cut

The pound to Australian dollar exchange rate stands at 1.8813 today on the interbank, at the time of writing. By comparison, back on January 8th, sterling was as high as 1.9154 versus the so-called Aussie, so it’s since weakened by around 3.5 cents, or by 1.78%.

The GBP to AUD interbank exchange rate remains on the back foot, in part because the financial markets are increasingly factoring in the possibility that the Bank of England (BoE) will cut UK interest rates later this month.

According to investors, there’s now a 52% chance that the central bank will reduce UK borrowing costs below their current 0.75%, up from a 5% possibility earlier this month. This is because, since last Thursday, three BoE policymakers have made comments, suggesting that they may vote to reduce UK interest rates, if Britain’s economy doesn’t accelerate in the foreseeable future. For example, BoE Governor Mark Carney said last Thursday that, if UK GDP (Gross Domestic Product) doesn’t accelerate, it could prompt a “relatively prompt response” from the central bank. In turn, this has weakened the pound.

Pound Might Be Affected, if UK Economy Accelerates in Early 2020

However, looking forward, sterling’s value versus the Australian dollar might be affected, if the UK economy grows faster. For example, yesterday we learnt that, between October to November, UK GDP grew by 0.1%, according to the Office for National Statistics, above economists’ forecasts for a 0.1% decline. This is even though Britain’s economy shrank by 0.3% in November.

Similarly, watchdog IHS Markit recently reported that UK business confidence has risen, following the Conservative Party’s victory at the general election last month. In part, this is because the Tories’ win brings a degree of predictability to the Brexit outlook, which in turn might impact the pound.

AUD Could Be Influenced by Bush Fires, RBA Response

In addition, the GBP to AUD interbank exchange rate might also be influenced, by Australia’s continuing bush fires. As the natural disaster burns vast swathes of Australia’s land, households and businesses may respond by spending less.

In addition, the Reserve Bank of Australia (RBA) is increasingly being tipped to cut Australia’s interest rates, down to 0.5%, to support the economy. The RBA’s next meeting is on February 4th, which might affect the AUD.

For more information on AUD exchange rates for an upcoming currency transfer, you cam email me, Matt Vassallo, directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Pound to Australian Dollar Weakens, as Australian Data Beats Forecasts

The pound to Australian dollar interbank exchange rate stands at 1.8998 today at the time writing. By comparison, back on Wednesday 8th January, sterling was as high as 1.9151 versus the so-called Aussie dollar, so it’s since weakened by 0.81%.

The AUD has gained against the GBP in the last two days, in part because Australia’s economic data this week has exceeded forecasts.

For example, today we’ve learnt that Australia’s retail sales rose by 0.9% in November, well above forecasts for a 0.4% gain, boosted by Black Friday. In addition, this Wednesday 8th it was revealed that Australia’s building permits increased by 11.2% in November, easily exceeding forecasts for a 2% increase.

So this suggests that, in spite of the bush fires continuing to ravage millions of acres of Australia’s territory, the economy continues to expand. This has helped lifted the Australian dollar.

Australian Dollar Climbs, as RBA Less Likely to Cut Interest Rates in February

These upbeat economic releases Down Under have strengthened the Australian dollar, in particular because they make it less likely that the Reserve Bank of Australia (RBA) will cut interest rates in the foreseeable future.

Until recently, it was thought that Australia’s central bank could cut borrowing costs below their current 0.75% to a new all-time low, perhaps as soon as their next meeting, on February 4th.

After all, lower interest rates cut the cost of taking out a loan in Australia, thereby benefiting the economy, and compensating somewhat for the ongoing natural disaster. So this hope has boosted the value of the AUD too.

GBP May Be Affected by UK Green Shoots, Conciliatory Trade Talks

However, looking forward, sterling’s value versus the Aussie dollar could be affected, first by signs of green shoots in the UK economy. This week we learnt that UK business confidence has improved following the Conservatives’ election victory last month, which could increase Britain’s economic growth in 2020.

Also, new European Commission President Ursula von der Leyen has signalled a conciliatory approach to the UK/EU trade talks, thereby potentially lifting UK business confidence too. In particular, President der Leyen said that “We will have to prioritise” to accommodate Prime Minister Boris Johnson’s legislation, to finalise the trade talks by December 31st 2020.

For more information on AUD exchange rates for an upcoming currency transfer, you cam email me, Matt Vassallo, directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Promising End to the Week for the Australian Dollar, Despite Weak Manufacturing Data

The Australian dollar has capped off its first trading week in the New Year in a good position. Yesterday saw the release of the anticipated manufacturing PMIs for December. The figures were disappointing however and saw the AUD slump slightly. But the AUD did find further support from the US-China trade deal which has now received an official signing date from the US President.

Australian Manufacturing PMIs Disappoint

The December manufacturing figures for Australia were released on Thursday. The results showed a disappointing return as the index slipped further into a state of contraction which limited the gains seen from the AUD. The Aussie economy was not the only one to fall short of positive manufacturing data however as the UK and China also saw their manufacturing sectors take a dip. The poor Aussie data saw the AUD fall in strength as investors were concerned about the sector’s ability to recover going forward. The overall downward trend did prove somewhat positive for the AUD however as the GBP slumped from its own poor UK data, allowing the GBP/AUD rate to shift in favour of the AUD.

US-China Trade Deal Receives Official Signing Date

The AUD found support from the updates surrounding the US-China trade deal. US President Donald Trump stated that an official date had been set for the two countries to meet and sign the ‘phase one’ deal. News of this signing sent the AUD rising as confidence that the global economy was likely to gain also.

AUD Exchange Rate Could be Vulnerable to Lack of Market Risk Appetite

Economists have noted that the Australian dollar may fall victim to a lack of market risk appetite. The next important data release will be that of the December Australian services PMI to which analysts have pinned a decline to the upcoming result. Should this be the case, the AUD will most likely lose confidence from investors. But the AUD could strengthen should the Federal Open Market Committee (FOMC) cut their rates once more or show dovishness in their upcoming meeting’s minutes.

If you are in the process of buying or selling Australian dollars and would like a free quote then contact me directly, Tom Holian, I look forward to hearing from you.teh@currencies.co.uk

Australian Dollar on the Front Foot Heading Into 2020 After Overcoming USD Losses and 2019 Downtrend

The Australian Dollar had a rocky 2019, with three interest rate cuts from the Reserve Bank of Australia (RBA) which left the rate sitting at 0.75%. However, the latter of the year appears to have turned positive for the currency. As the last day of the year approached, the AUD saw itself overcome the downtrend it was on and overturned the losses it experienced against the USD in 2019. The US-China deal is also due to be signed which lends the AUD more support as a currently weaker USD allows the AUD to edge in their exchange rate cross-over.

AUD Overturns 2019 USD losses

The Australian Dollar overturned its 2019 losses against the USD as the end of the year approached. The Aussie rose 1.3% against the USD last week and rose by 3.67% for the month of December. This allowed the AUD to chop its 2019 losses down to -0.59% ahead of the year-end. Economists are suggesting that the AUD is performing well, but still has some way to go to catch up to the Pound Sterling which gained 0.48% in the GBP/AUD exchange rate last week and is still up some 3.7% for the whole year.

Positive Economic Data Has Helped out the Australian Dollar

A recent stream of positive economic data has offered the Australian economy a helping hand to reach the finish line of the year. Most notably, the November jobs data which saw a fall in the unemployment rate across Australia and a creation of 39.9k new jobs for the month. With positive news coming from the economic front, the chances of an RBA rate cut for February are beginning to lessen. This is positive news for investors as a rate cut would see it drop to around 0.5% and the AUD would likely lose strength in the global market.

Us-China Deal Set to Be Signed, Aud Set to Rally on Completion of ‘Phase One’

Vice Premier Lui He is set to travel to Washington on Saturday in order to sign the ‘phase one’ deal between China and the US. Upon completion of the deal, the AUD will be poised t rally as it will benefit from an uplift in the Chinese economy as US tariffs are lifted on the country. The global economy will also benefit from this deal so investors around the world are keen to see the deal go through.

For more information on the Australian dollar and assistance in making transfers when either buying or selling Australian dollars please contact me, James at jll@currencies.co.uk

Downbeat tone surrounds AUD outlook for 2020, whilst GBP builds on GDP data to head into new year

This year has seen lots of bumps in the roads for both the AUD and GBP. But there have also been highlights and many gains made. The outlook for 2020 has been forecasted for the AUD and many are not holding their breaths for anything spectacular. The consensus is that the economy is still under repair but looks to better itself in 2020 than the current year. Meanwhile, for the GBP, positive GDP data helped the UK recoup some of its losses as the figures were revised. The next governor of the Bank of England was also revealed which gave the GBP a boost as the elected figure is deemed to be a “safe pair of hands”.

Outlook for AUD Looks Uninspiring, but the Central Bank Remains Optimistic

Forecasts for the upcoming year have begun to be predicted for the AUD. After a rocky year and a few interest rate cuts from the RBA, the AUD’s outlook looks bleak. Many economists are suggesting that the Aussie economy is under repair and needs some TLC before it can get back into winning ways. This TLC is likely to arrive from the RBA and fiscal policies. Despite this, some including the RBA themselves are remaining positive that the economy will pick up in 2020. The RBA have suggested that economic growth is expected to be around 2.75% in 2020 with a rise to around 3% in 2021. This is positive news for investors should this be the case, as the scenario appears to be that 2020 will build upon 2019 but will not be anything outstanding.

GBP Rallies on Positive GDP Data Revisions

For the GBP, it starts the week on a high after recouping losses following upbeat figures as growth was revised up from 0.3% to 0.4% in Q3. A rise in growth figures paves the way for further growth going into 2020 and this helped give the GBP a boost. Added to this, the new governor of the Bank of England was announced, Andrew Bailey will be the next governor and with this news support was given to the GBP as he was regarded ‘a safe pair of hands’. The latter end of last week also saw Boris Johnsons EU withdrawal bill easily pass through parliament but investors still remain cautious of a no-deal Brexit so this did little to stir up the Pound.

The UK market is set to close on Christmas and Boxing day and a lack of notable data will mean that the week ahead will likely be uneventful, limiting volatility.

For more information on AUD exchange rates for an upcoming currency transfer, you cam email me Matt Vassallo directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Positive News for Australian Shares Before Christmas Day

Reports from Wall Street are suggesting that a rally on the international market could be set to buoy Australian shares. Economists are tipping the shares to open in the positive ahead of Christmas. With an opening of around 10-15 points, the futures market looks positive for those with Aussie shares.

Economists Tip a Futures Market Opening to Start Christmas Week

Shane Oliver, Capital’s chief economist, reported on Sunday that he expects the futures market to open up at around 10-15 points today. He also mentioned that the rally is likely to follow that of the US and Europe which will be at around 0.2-0.3%.

His claim for a positive start to this week is based off the lead-in from Wall Street and Europe which he described as positive. This will be welcome news to those invested in Australian stocks as last week saw them end on a softer note with the benchmark S&P/ASX200 index finished up trading on Friday at 16.8 points or 0.25% lower at 6,816.3 points, with the broader All Ordinaries slipping 16.5 points or 0.24% to 6,926.1 points.

Strong Week Ahead as AUD Stocks Look to Build from Futures Market and US-China Deal

Mr Oliver stated that the most likely scenario is that a modest gain is observed going into this week. Despite the fall in the Aussie market at the end of last week, the US market rallied as did the European market.

He also noted that the ‘phase one’ agreement between the US and China was a positive occurrence for the China-sensitive AUD which should filter in positivity into the market. Investors have become frustrated recently as details from the deal have yet to surface, leaving investors in the dark about what has been agreed upon.

However, the market is hoping that details will be released in the upcoming week, should this be the case then the AUD will be set to benefit as China receives a boost to their economy.

With there being two public holidays in this week as the festive period arrives, it is likely to be a quiet week on the trading front. But economists are suggesting that a “Santa Clause” rally in the market will hopefully give a final boost to the economy as the year draws to a close and wraps up on New Year’s Day.

For more pound and AUD news, keep up to date with our daily blogs. Alternatively, if you have a currency requirement you can get in touch on +44 (0)1494 416 503 to discuss these factors in more detail or contact me directly at dcj@currencies.co.uk.

An Edging GBP/AUD Exchange Rate Following Rising Tory Majority Hopes

A new week spells a new opportunity for both the Australian Dollar and the Pound Sterling to attain a boost to their current standings. But with AUD’s recent poor performance and reliance on the US-China trade war deal being completed, a boost is looking unlikely. For GBP, the heavy reliance on its general election outcome next month. A Tory majority appears to be a reassurance that Brexit will be delivered, that is what investors are banking on.

GBP/AUD Rate Edged Higher Yesterday


The GBP/AUD exchange rate edged higher yesterday by 0.4%. The pairing was trending at around AU$1.897, the Conservatives continued to maintain their lead in the polls following the much anticipated release of their manifesto on Sunday.

The deputy director-general of the Confederation of British Industry (CBI) mentioned that a pro-enterprise vision will gain businesses attention, whilst looking to build upon more ambition on areas like access to skills, infrastructure and reaching net zero. The Conservative party are currently in favour with the markets due to their pro-business approach with their policies. GBP/AUD edged yesterday as the response to the new manifesto did not upset the Tory lead over the Labour Party in the opinion polls.

AUD/GBP Rate Sinks, Us-China Trade Deal Becomes Urgent for Australian Economy but Shows Signs of Promise


For AUD, trading has not been positive over the past few weeks. Being in a constant stranglehold for the outcome of the US-China trade war deal, their progress has been limited in the markets. However, the deal once again looks more hopeful, President Trump mentioned that a deal between the two largest economies of the world was ‘potentially very close’. This gave much needed optimism to the trade talks. The RBA’s Assistant Governor gave a speech yesterday and the minutes are eagerly awaited to observe whether a dovish approach has been taken to the economy of Australia. Should this be the case, it is likely that the Aussie Dollar will take a hit.

AUD Could Rise Following Hawkish RBA Commentary


Philip Lowe, governor of the RBA is set to give a speech later today, investors will be hoping that he produces a hawkish tone which will likely buoy AUD on hopes of a recovering economy. Alongside this, any progress being made in the US-China talks will undoubtedly boost AUD/GBP standing. GBP will be looking towards the October BBA mortgage approvals which are set to be released later today, should positive figures be announce GBP will likely favour over AUD in the day’s trading efforts.

Feel free to email me, Dayle Littlejohn if you would like to know more on the factors affecting the AUD/GBP pairing or have an upcoming currency transfer drl@currencies.co.uk.

Australian Dollar Makes Strides Forwards Despite Dovish RBA Minutes

Investors in the AUD were pleasantly surprised yesterday as trading concerning the Aussie dollar looked up. Expectations were down on Monday’s pessimistic, dovish minutes which were released by the Reserve Bank of Australia (RBA). The cautious tone was set over the AUD as interest rate cuts looked likely before the years end. Several figures in the RBA had appeared to be open to the idea of another cut soon.

RBA Minutes do not Unsettle the AUD

The RBA minutes reported that the bank is looking to take a dovish approach to its monetary policy. This is following recent underperformance and pressure from US-China trade talks. However, news that broke out yesterday was positive for the AUD. Reports suggested that the Australian dollar reversed its earlier losses which were caused by the surprise dovish comments in the RBA minutes. The AUD has rallied, especially so once the London trading session opened. This provides a positive outlook for the AUD despite recent poor performances in the market.

GBPAUD Rate Steady but Prepared for Volatility

The GBPAUD interbank exchange rate was trading at around AU$1.8935 yesterday, which by recent figures is a steady rate. The risk-sensitive Australian dollar is still heavily under pressure from the US-China trade talks however. The volatility of the talks has caused fluctuations for the AUD over the past weeks.

A negative downward pressure was placed on the AUD after President Trump suggested that the US may raise tariffs even higher if a ‘Phase One’ deal could not be reached between the two. This threatening approach has not filled investors with optimism, but US representatives were hopeful, suggesting that if their negotiators felt the deal was hopeless, they would have stopped already.

GBP Struggles Against AUD Following Tuesday’s Live Debate

Wednesday was a difficult day for the GBP after it failed to edge above the AUD following Tuesday night’s live election debate between Prime Minister Boris Johnson and Labour Party leader Jeremy Corbyn. Neither leaders came out ahead of the other and failed to instil faith that the Conservatives would hold a majority in December. To add to this, a flash poll from YouGov displayed a modest majority for the Tories at 51% to 49% but this was not enough to buoy the market confidence in the GBP.

Despite the Conservatives slight lead over the Labour Party, the performance from the live debate only emphasised political concerns involving the likelihood of a Tory majority come December 12th. Analysts did mention that the GBP was not significantly affected by the debate and could have been swayed much more should Jeremy Corbyn have gained an advantage in the polls.

For more sterling and Australian dollar news or if you have a currency requirement you can get in touch with me, James Lovick, directly at jll@currencies.co.uk, or call +44 (0) 1494 360 899 to discuss these factors in more detail.

Dovish Reserve Bank of Australia Sinks AUD Rates Leaving Investors Unsettled

The outlook for the AUD was looking to the Reserve Bank of Australia (RBA) meeting which occurred yesterday. The current trend of the AUD looked as if the RBA would take a ‘dovish’ approach to their monetary policies. Investors had hoped that this would not be the case as the currency would lose momentum. As the minutes were released from the meeting yesterday this seemed to be exactly the case.

Sharp Retreat For Australian Dollar

The Reserve Bank of Australia’s minutes were released yesterday, which caused a sharp retreat of the AUD in the market. The meeting, which covered monetary policy, showed a bank that was still poised to cut interest rates despite current record lows. The key official cash rate was left at 0.75% but the minutes revealed that the possibility of another cut could not be ruled out.

Likelihood of a Further Interest Rate Grows

With the findings of the minutes from the RBA, it is more likely than ever that interest rates will be cut to a new record low before long. Policymakers in the meeting saw a clear case for the fourth rate cut of 2019, but have decided to wait and observe the effects of previous rate cuts before moving forward. The bank highlighted that only gradual progress has been made so far which gave reasoning to potential future cuts. The minutes also revealed that whilst members has judged that lower interest rates were supporting the economy, they also noted the possible negative impacts of lower interest rates on savers and for confidence in the AUD.

GBPAUD Interbank Exchange Rate Slumps Amidst RBA’s ‘Dovish Tilt’

Reports have suggested that the pound to Australian dollar exchange rate had slumped following the news of a ‘dovish’ RBA. The Aussie dollar edge up against the pound despite the proposed considerations of another rate cut. The trading rate was around AU$1.8953 yesterday. The GBP will be hoping for a boost following the YouGov poll, released after last night’s live head-to-head debate between Boris Johnson and Jeremy Corbyn. The pound continues to edge higher on hopes that a Tory majority will be achieved in December’s elections.

In regard to today’s outlook, the AUD could surrender some of yesterdays gains following the release of Westpac’s Leading Index. Should the index slump it could weigh on the AUD. Meanwhile for the GBP, if the polls suggest further support for the Conservatives it will likely give a further boost to the pound sterling.

If you are in the process of buying or selling Australian dollars and would like a free quote then contact me directly, Tom Holian, I look forward to hearing from you. teh@currencies.co.uk