Tag Archives: GBP/AUD forecast

GBP/AUD Rates Hit 2! (Matthew Vassallo)

GBP/AUD exchange rates moved back through 2 at today’s high, providing some of the best buying levels of the past 5 years. The Pound has benefited two fold over recent months, with an improvement in UK data and growth forecasts without doubt providing the catalyst for GBP’s recent momentum but also the slowdown in China’s economy (Australia’s largest trade partner) and the Reserve Bank of Australia’s (RBA) commitment to lowering the value of the AUD in order to boost exports.

Australia’s economy is so heavily reliant on the export of its vast supplies of raw materials that any slowdown in this sector will inevitably have a negative effect on AUD exchange rates.

With little data of note out for Australia before the weekend any further spikes are likely to be based on outside variables, so anyone with an AUD requirement should be keeping a close eye on the US Inflation & GDP data out tomorrow. Due to the global weight the USD holds, any major spikes for the greenback is likely to have an knock on effect for more volatile currencies like the AUD.

Personally I feel the AUD will find support around the current levels and recent history on the pair do not indicate a major shift market sentiment or stance, so from this standpoint I would certainly be considering my position around the current levels if I had an upcoming AUD purchase to make.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Are GBP/AUD Rates Heading Back Above 2? (Matthew Vassallo)

It’s been a volatile couple of weeks for GBP/AUD rates of late, with both the Pound and the AUD threatening to build momentum at different junctures. Initially it looked as if the AUD may make a move back towards 1.90 and with the uncertainty created in the build-up to the UK election, this was looking like a distinct possibility.

However, as often happens the currency markets can move aggressively and unpredictably and the Pound immediately gained market support following last week’s election result and the on-going concern over the slowdown in China’s economy. With China and Australia so inextricably linked due to their trade agreement; any slowdown in China’s economy invariably has a negative effect on Australia’s and ultimately the AUD.

Personally I feel that GBP/AUD rates are likely to head back up towards 2 over the coming weeks, unless there is a change in stance from either central bank and/or a change in market perception surrounding China, which could lend itself to some AUD support.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly at mtv@currencies.co.uk

What next for GBPAUD rates?

I think the Aussie will now suffer and GBPAUD will drop a bit closer to 0.50 gbp / 1 AUD. This is great news for anyone buying Australian dollars but not the best of news for anyone selling the Aussie! Just what can we expect to see happen longer term on the currency pairing? Well the Reserve Bank of Australia have made no secret of their intention to seek a weaker currency to help boost their exports.

Historically we are at some very favourable levels to buy the currency, if you have a currency requirement in the future it is worth making firm plans in advance so that you do not get caught out. For more information on the best course of action please speak to me Jonathan on jmw@currencies.co.uk

GBP/AUD Rates Rise as UK General Election Results Become Clear (Matthew Vassallo)

GBP/AUD rates have recovered following a poor few days on the market for the Pound. Sterling value had been knocked as the uncertainty surrounding the outcome of the UK general election took hold, with GBP/AUD dropping by almost 3 cents during the early part of this week’s trading.

For a period it looked as if the AUD may put pressure on 1.90 and with that being a key resistance level for GBP, it may have continued had it breached that glass ceiling. However, following developments last night and in the build-up to the election the Pound started to recover and moved back above 1.95 at today’s high. With the Conservatives now having secured an overall majority, an outcome the markets seemed to be craving, we have seen confidence restored and it is likely that Sterling will continue to be well supported in the short-term.

This feeling is enhanced as data from China, Australasia’s largest trading partner, has shown that their exports have dropped. Any downturn in China’s economy is generally mirrored in Australia and therefore it is unlikely to help boost AUD exchange rates over the coming days.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Where Next for GBP/AUD Exchange Rates? (Matthew Vassallo)

GBP/AUD rates have been on a bumpy ride this week, with both currencies threatening to make a decisive move. Neither could gain enough market support to make a sustained move, with the pair still floating around 1.94 on the exchange.

The Pound has lost some ground however this morning, following poor UK Manufacturing data for April. Figures showed a sharp downturn, with a reading of 51.9 below expectations. This has caused the Pound to weaken and the AUD has now moved back under 1.94. GBP/AUD is generally a volatile currency pair, as witnessed during yesterday’s trading, when rates moved by almost 3 cents from high to low.

Whether this spike for the AUD carries on into next week is debatable, as on Tuesday we have the latest Reserve Bank of Australia (RBA) interest rate decision and subsequent statement. With many expecting the RBA to cut interest rates again we could find this positive move for the AUD is short-lived. I also feel that Sterling is suffering due to the uncertainty surrounding the general election and this is handicapping any positive moves for the Pound. Once this uncertainty has been removed we could find GBP/AUD rates moving back towards 2.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Will GBP/AUD Rates Head Back Above 2? (Matthew Vassallo)

GBP/AUD rates continue to float around 1.93 on the exchange, with the pair unable to make any sustained move either way over recent weeks. It was widely anticipated that the Reserve Bank of Australia (RBA) would cut their base interest rate during their last policy meeting but when this did not occur we saw the AUD gain support, which has helped to keep GBP/AUD rates comfortably under the 2 level.

Many expected the Pound to breach glass ceiling, with on-going concerns over the rate of economic growth inside China, Australia’s largest trading partner. However, with mixed data coming from the world’s fastest growing economy and an improvement in their latest Gross Domestic Product (GDP) figures, the pressure on the AUD cooled and we now find ourselves at something of a crossroads. Of course much will depend on whether the RBA cut rates at their meeting early next month but personally I feel the AUD will find support below 2, which should help curb any major loses in the short-term.

We have seen a small improvement for the AUD against GBP today, following better than expected Australian inflation data. Looking ahead and with UK Retail Sales out tomorrow and Business Confidence figures released overnight on Thursday in Australia, we could find that GBP/AUD rates fluctuate more aggressively in the run up to the weekend.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

When will the RBA cut their base rate?

The RBA (Reserve Bank of Australia) are scheduled to cut their base rate once more this year, it is not in the Australian economy’s interest for the currency to be too strong! Just when this may happen is unclear but the RBA have actively been targetting a weaker AUD in the hope of boosting exports and stimulating the economy. The crash in commodity prices in recent years has hampered growth in the Australian economy and weakening the currency may help artificially improve the outlook.

There is a growing concern about the extent to which exchange rates will improve for those selling AUD with the UK’s General Election just around the corner. Depending on just how the election pans out we could be seeing some short term GBP weakness presenting an excellent opportunity to buy your pounds. For more information and to be kept up to date with the latest news, please email jmw@currencies.co.uk

Are GBP/AUD Rates Heading Back to 2? (Matthew Vassallo)

GBP/AUD exchange rates have spiked again during Thursday’s trading, with the pair hitting 1.9653 at the high. This move has continued on from yesterday’s positive momentum and once again it seems as if the Pound will now have back toward 2 over the coming weeks.

However, as regular readers will know GBP/AUD is one of the most volatile trading pairs and therefore any market spikes can be quick and aggressive. Only a week ago it did seem as if the AUD was heading back towards 1.90, before an upwards revision of UK Gross Domestic Product (GDP) figures pushed rates back up.

Whilst Sterling has gained across the board I’m not convinced this trend will continue as the Bank of England have already voiced their concern at the two year low seen in factory orders, which ultimately means our export industry is suffering. They will likely try and control Sterling’s value if it were to rise any further against the EUR and if they do this the knock on affect is likely to be a negative for the Pound.

We also need to consider that the UK general election is now only a month away and this is likely to dominate the media focus and headlines over the coming weeks. This could cause uncertainty in the markets, which in turn could cause the Pound to weaken. However, it is likely that the Reserve Bank of Australia (RBA) will hold the key as we have their latest interest rate decision next Tuesday. Up until now they have been committed to lowering the value of the AUD and until this stance changes I believe the AUD will struggle to make any sustained inroads.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Are GBP/AUD Rates Heading Back Towards 2 (Matthew Vassallo)

GBP/AUD rates have dropped off over the past week, with the pair dipping below 1.90 at the low. With UK economic data not as strong recently, it is not surprising to see the AUD realign itself slightly. UK Factory orders have fallen to a 2 year low, proof that our exports are being hurt the Pound’s rising value and despite better than expected Retail Sales figures released this morning, the Pound seems to have lost its recent momentum.

Despite this dip for the Pound I do not expect this trend to continue in the long-term. The Reserve Bank of Australia (RBA) seem as committed as ever to lowering the AUD’s value, in order to help boost their exports and with mixed data coming out of China recently (Australia’s largest trading partner), the AUD could struggle to make any sustained inroads against GBP under 1.90.

With little data of note out for either the UK or Australia for the rest of the trading week, I do not anticipate any major moves from the current levels. I do feel it is more likely we will see Sterling creep back up, than see the AUD start to move towards 1.85.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

GBP/AUD Rates Dip Towards 1.92! (Matthew Vassallo)

GBP/AUD rates have dropped again during Wednesday’s trading, following the release of the latest UK unemployment figures and BoE minutes. UK unemployment figures came out worse than expected and caused the Pound’s value to drop once again.

Sterling had seen it’s potion slide against the AUD since the start of the trading week and with the latest Reserve Bank of Australia (RBA) bulletin being released overnight and then RBA governor Glenn Stevens speech overnight on Thursday, it is likely we will see further market volatility before the trading week is out.

GBP/AUD rates have dipped towards 1.92 and if this momentum continues it is likely pressure could be put on the 1.90 resistance level before long. However, due to the volatile nature of the currency pair, it is not unusual to see aggressive swings in a very short space of time and this is also not the first time the AUD has threatened to realign itself over recent weeks. Personally I feel there is still more chance we will see the pair move back toward 2, than trade under 1.90 for any sustained period.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates, then please feel free to contact me directly on mtv@currencies.co.uk