Tag Archives: GBP/AUD forecast

Recent Volatility on GBP/AUD Rates Continues (Matthew Vassallo)

The recent volatility on GBP/AUD rates looks set to continue, with the AUD finding further support during Tuesday’s trading. With GBP/AUD rates moving back towards 2.12 earlier today the recent volatility on the pair looks set to continue. Many clients are now questioning where the pair will head next and regular readers will be aware that due to the additional volatility seen on GBP/AUD rates compare for example to GBP/USD rates, it makes forecasting, particularly long-term, very difficult indeed.

However, that doesn’t mean that we cannot identity and execute trades at better levels than seen today, whether you are buying or selling AUD. Whilst the general trend of late has been AUD weakness there have been opportunities in the form of short sharp burst, which if monitors and actioned upon, could provide AUD sellers with a short term ‘window of opportunity’.

The general consensus regarding forecasts on GBP/AUD indicate that the AUD may struggle to make any sustained inroads in the short-term, certainly whilst there is a continued slow-down in the Chinese economy. China are Australia’s largest export partners and any slowdown in this sector is a major concern for Australia, who are heavily reliant of the export of their vast supply of raw materials.

Whilst I do expect improvements in China over the coming months I would be surprised to see GBP/AUD rates head back below 2 anytime soon but it does seem as though the AUD has finally found some support around the current levels.

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@currnecies.co.uk

GBP/AUD Rates Rise Again (Matthew Vassallo)

GBP/AUD rate shave spiked up during Friday’s trading, with the Pound gaining almost 3 cents at today’s high. The recent volatility on the pair looks set to continue after the AUD made strides yesterday, only to see these gains quickly eliminated as we head into the weekend.

The Pound was hit yesterday following some very poor UK Retail Sales figures, which dragged Sterling’s value down throughout yesterday’s trading and it did seem as though the AUD had found some much needed respite. However, as today’s developments prove nothing is certain in the currency markets but what is of even more concern is that the AUD has lost support so quickly despite the downturn in UK data mentioned.

The markets confidence in the Australian economy is at an extreme low at present, with major concerns over economic growth in China, their largest trade partners. With Bank of England (BoE) governor Mark Carney also talking up the chance of a UK interest rate hike happening sooner than many will expect, has also helped to solidify Sterling’s position.

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@currnecies.co.uk

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

GBP/AUD exchange rates have dipped during Tuesday’s trading, with Sterling losing almost 2 cents from the high this morning. With the pair now floating around 2.09 on the exchange are we finally seeing some light, at the end of what has been a very dark tunnel for any clients selling AUD of late.

With GBP/AUD trading at some of the best levels of the past 6 and a half years, it has certainly a very attractive position for AUD buyers to be in. A slowdown in China’s economy and the current negative media reports regarding the major dip on their stock exchange, has certainly had a negative knock on effect for Australia.  Due to the trade links between the two countries Australia’s economy remains reliant on a high demand for its vast supplies of raw materials, so when China’s demand falls this ultimately hurts the AUD.

However, often once you’ve seen such aggressive moves in the market there is a then a realignment and it may be we are witnessing the start of one on GBP/AUD. With a deal now in place between Greece and its creditors, this could be seen as a major boost for the global markets. Once this occurs you usually see investors move away from safe haven currencies such as the USD and move into more riskier currencies such as the AUD, so this could help to solidify the AUD’s position and bring some much needed despite after a difficult few months.

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 hit 2.10 again for fresh 7 year highs! (Joshua Privett)

Yesterday’s post detailed how the AUD has lost value due to shock news about commodity price drops. Today another shocking leak from an IMF produced a report saying that they do not agree with the Greek bailout proposals. This gives ammunition to those in the Greek parliament hoping to reject the offered proposals. As such, more nervous investors have flown into safe haven currencies such as Sterling, the corollary being that this has artificially boosted the Pounds secondary currency pairings such as GBP-AUD.

But the move upwards was slight. Most of this money went into the Dollar rather than the Pound, due to comments made by George Osborne, the UK Chancellor. He was adamant that he would not pay any UK funds into the Greek bridging loan, which has caused concerns about the UK relationship with the Eurozone. Essentially the UK is not as desirable as it once was as problems grow with the European mainland.

The vote in Greece is scheduled for 10pm GMT, but I would not bank on it as these processes tend to drag on. Breaking news is that more than half of the Syriza party are against the deal. Will they be able to turn this around? We’ll see later tonight.

This will not affect the bridging loan offered to Greece to keep their banks afloat. Like all the times before this, the end goal for both parties is keeping the country in the Eurozone, this is just more of the same delays.

Depending on what happens overnight this could provide short term buying opportunities for the AUD – email me on jjp@currencies.co.uk to discuss the news overnight – I will be awake at 4am to see how Sterling is trading on the Asian markets and can provide a comprehensive idea of whether this is indeed the top of the market to buy AUD. 01494 787 478

GBP/AUD Rates Hit 7 Year High! (Matthew Vassallo)

GBP/AUD rates have a hit a fresh 7 year high, with the Pound’s recent momentum showing no signs of letting up. The AUD has suffered of late due to a slowdown in their exports, which has come about due to a lack of demand for Australia’s vast supplies of raw materials. Australia’s economic wellbeing relies heavily on this sector and with a major slowdown in China’s economic growth, this sector has been hit particularly hard of late.

We also need to consider that the Reserve Bank of Australia (RBA) remain steadfast in their commitment to lowering the value of the AUD, in order to boost trade and whilst this commitment remains it is unlikely the AUD will gain any sustained market support.

We also had comments yesterday from Bank of England (BoE) governor Mark Carney, who indicated that if the current trend of positive data continued in the UK that we could see interest rates raised sooner than expected, which immediately lent further market support to the Pound.

My one concern is that the current trend cannot last forever and if GBP/EUR rates continue to climb then the BoE will need to try and control Sterling’s value otherwise the UK could find themselves in a similar position to Australia, due to the fact that our goods and services will become too expensive for trade. If this scenario continues then the BoE may start to talk down the UK economy to try and control Sterling’s value and this in turn will have a knock on effect for GBP/AUD exchange rates.

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@currnecies.co.uk

GBP/AUD Rates get strong boost from commodity price fall (Joshua Privett)

After years of negotiation and controversy, there is a finally a deal between Iran and the rest of the world for them to curb their nuclear program in return for lifting their crippling sanctions. As a result, Iran can finally export is massive stores of oil and other commodities which will flood the market and lower prices across the board. Countries who depend on commodities for their income, such as Australia, are viewed less confidently abroad, which weakens their currency further.

For more examples on how these fluctuations affect currency markets click here.

However, before this happened GBP-AUD rates were actually starting to slide. Sterling has received an artificial boost against all major currencies following a huge amount of capital flight from an unstable Eurozone and into safe haven currencies. Now that the first steps in an ‘agreekment’ have been reached, this money has been flooding back out of Sterling and into the Euro while the outlook is rosier.

So while this announcement lowered the value of the AUD in the short term, in seems the general trend has been shown to be going in the other direction. Those looking to buy AUD could be seeing the best rates available in 2015, we will know more tomorrow if the Greek parliament approve the bailout. I recommend emailing me overnight with your requirements, and I can respond tomorrow when we have a more solid viewpoint how the agreekment will progress and how this will impact GBP-AUD rates. Even if your requirements are not until later in the year, rates can be pegged at no additional cost – jjp@currencies.co.uk

Will the Recent GBP/AUD Trend Continue? (Matthew Vassallo)

Sterling has performed extremely well against the AUD of late, with rates hitting a fresh 6 year high. With the Pound’s positive momentum continuing above 2, the question now is will this trend continue or is the AUD likely to find some market support at last?

Firstly it is worth looking into why the AUD has lost so much value against GBP in a relatively short space of time. Due to Australia’s reliance on the export of its raw materials, any fall off in this sector inevitably hurts Australia’s economic productivity and ultimately the AUD. With a slowdown in China’s economy and a concern over a major drop in the Chinese stick markets, confidence is low and this is certainly hurting the AUD.

We also need to consider the Reserve Bank of Australia’s (RBA) stance on the matter. They feel the AUD is still too strong, so will not be overly concerned by this drop. If Australia’s exports become cheaper for their trade partners, it is likely to boost their economy as this sector will become more affluent.

Finally we need to consider the global market and whilst the uncertainty around Greece remains, investors are less likely to put their funds into riskier currencies such as the AUD. They will move to safe haven’s such as USD and this again is likely to cause the AUD to weaken.

These scenarios are not particularly positive in terms of a major improvement but even today we have seen some support for the AUD, which may have come about due to rumours that Greece and its creditors are still pushing for a deal to be put in place. If this scenario does occur it is likely to bring some initial respite for the AUD.

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 rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Have GBP/AUD Rates Hit Their Peak? (Matthew Vassallo)

It’s been a volatile few weeks for GBP/AUD exchange rates, with the pair hitting a fresh 6 year high last week. However, as often happens when there is an aggressive spike in the market we have seen a realignment, with the pair moving back following market support for the AUD. With the pair still trading above 2 it may be that we have seen Sterling hit a peak and an improvement in Chinese data and growth forecasts last week may have been the catalyst for this spike. The links between China and Australia have been discussed heavily in previous reports but due to their trade links and improvement in China’s economy usually has a positive knock on effect for the AUD.

This spike could continue as we head towards the end of the trading week, with Australian Retail Sales figures release overnight on Thursday expected to show an improvement on previous figures at 0.5%. If this prediction turns out to be correct then it is likely the AUD will gain further support and could make a move back towards 2. Therefore I would not be gambling on such a volatile market and would look to take advantage of current levels whilst they remain above this threshold.

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 you current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Will the Recent GBP/AUD Trend Continue? (Matthew Vassallo)

GBP/AUD rates continue to remain strong, with the pair hitting 2.0452 at today’s high. The recent trend of Sterling strength has shown no signs of letting up, with the pair recently hitting a fresh 6 year high. With Australia continuing to see rising unemployment and weak growth forecasts, the AUD is swimming against a tide of negativity at present and this news is unlikely to be the catalyst for a period of sustained AUD strength. When you add to this the continued slowdown in China’s economic growth and the Reserve Bank of Australia’s (RBA) commitment to devaluing the AUD to boost exports, then it is not difficult to see why the AUD has lost over 20 cents against GBP since the turn of the year.

Whilst we continue to see trades above 2 I would be very tempted to lock in if I had an upcoming AUD purchase, as any further improvement from the current levels is gambling on the market moving up to levels we haven’t seen for the best part of 10 years. The AUD is finding support and if this continues we could see a move back towards 2 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

GBPAUD at 6 year high!!! So what can we expect next?

GBPAUD has finally done what many clients have been waiting months and years for. GBPAUD has finally risen above the magic number of 1 GBP for 2 AUD’s presenting the best time in 6 years to buy Australian dollars. The question rightly now is will this continue and what can we expect next on this exchange rates pairing? All in all I expect the rate to remain very favourable but there is easily a danger we could dip below this important level of resistance. If you need to buy Australian dollars it would be a real shame to miss out on these exceptional improvements, I strongly suggest making some plans immediately to try to capitalise on the situation.

If you need to sell Australian the future is not bright and you might want to make some plans to exit the currency and look at other more stable options like sterling. The housing market in Australia is booming but if you are selling over there and coming back to the UK you could potentially lose out from a poor exchange rate. For more information on the currency forecast and how to plan and execute your exchange rate please speak to me Jonathan Watson on jmw@currencies.co.uk. I cannot tell you exactly what to do but I am confident I can offer useful insight and information to help you get the best deals.