Tag Archives: GBP/AUD forecast

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.

GBP/AUD Rates Near 6 Year High! (Matthew Vassallo)

GBP/AUD rates have moved back towards a 6 year high, following the latest Reserve Bank of Australia (RBA) minutes. These minutes give investors as essential insight into the relative health of an economy, whilst providing indications of future growth and policies. The RBA has long been committed to devaluing the AUD, for fear of alienating their trade partners. The AUD had become overvalued during the global crisis and with a slowdown in China’s demand for Australia’s vast supply of raw materials, the RBA had to look at ways to extend these trader arms, whilst making Australia’s goods and services more accessible to the global markets.

Moving forward I do feel the AUD is likely to find support around the current levels, as it often has done in the past. I would be tempted to take advantage of trades around 2 on the exchange and some of the best exchange rates seen in the past 6 years.

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 GBPAUD remain above 2?

The outlook on the Australian dollar remains fairly mixed but with the risk slightly to the downside. With the Kiwi clearly coming under some strong selling pressures this month as a result of the change in policy by the RBNZ, it seems probably the RBA will continue to be adopting a fairly accommodative stance in their approach to monetary policy. The region is suffering from lower growth than during the boom years of  with economic growth in China gently falling and demand for Australian raw materials falling too. The longer term projections favour the pound versus the Australian dollar although I expect some form of bounce back once the Greek deal is finalised, whenever that may be!

Tonight is the RBA meeting which I will be very interesting to get a feel for how the RBA view recent AUD weakness and whether or not this is going to be the start of further weakness for the Aussie. To be kept up to date with the latest trends and themes please speak to me Jonathan on jmw@currencies.co.uk for a full overview and the very best exchange rates.

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

GBP/AUD rates have spiked up again during Friday’s trading, with the pair sitting comfortably above 2 on the exchange. Many clients had been waiting for this glass ceiling to be broken before securing their AUD positons and despite the positive momentum we’ve seen, I would be tempted to lock in around the current levels. With the pair currently sitting near a 6 year high, I feel it is certainly an opportune moment to purchase AUD for anyone with an upcoming requirement.

When you consider the recent history on the pair, every time we have seen Sterling move above 2 the AUD quickly finds support and moves back below this threshold. Whilst I don’t anticipate GBP rates to slide dramatically anytime soon, I do feel we are seeing the Pound peak. With so many factors helping the Pound hold its value, it would only take a slight improvement in the situation with Greece, or a drop off in UK economic data and the recent trend would likely come to an end.

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 Move Back Through 2? (Matthew Vassallo)

GBP/AUD rates have dipped slightly during Friday’s trading, with the pair touching 2 in the market on more than one occasion this week. With Sterling struggling against many of the other major currencies this week, it was interesting to note that the opposite was happening against the AUD. Whilst it is a much more volatile currency pair than either GBP/EUR or GBP/USD, I was not expecting the Pound to hit 2 this week.

As regular readers will know the Australian economy is heavily reliant on China’s economic well-being, due to the heavy trade links between the two nations. China’s economic has slowed recently and this has hurt the AUD, along with the Reserve Bank of Australia’s (RBA) commitment to lowering the value of the AUD, in order to boost their export trade. The recent RBA minutes also indicated that the RBA still had the option of cutting their base interest rate further, news that again knocked market confidence in 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 exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

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