Tag Archives: GBP/AUD forecast

RBA Keep Interest Rates at 2.25% (Matthew Vassallo)

The Reserve Bank of Australia (RBA) surprised the markets earlier this week by keeping their base interest on hold at 2.25%. It was widely anticipated that the central bank would cut base rates to 2% but this move did not occur. Reports today have indicated the reason for this is concerns over house price growth, particularly in Sydney and that the last thing the RBA want is to cite monetary stimulus, which ultimately drives up house prices.

This week has also seen the release of the latest Australian Gross Domestic Product (GDP) figures, with economic growth slowing to 2.5%. Although this figure was expected, it has reinforced a negative feeling that currently surrounds the resource-rich economy.  With growth rates at this level, unemployment levels are unlikely to improve and with the RBA seemingly content to see the AUD lose further market value, the current woes for the AUD may not be over.

With further data out for Australia overnight in form of their latest Retail Sales figures, we could see further volatility on GBP/AUD rates before the weekend. The AUD did in fact strengthen by over a cent against the Pound during Wednesday’s trading, with the markets citing the RBA’s decision not to cut their base rate as a positive, rather than looking at the negative spin.

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 Forecast (Matthew Vassallo)

GBP/AUD rates have dipped slightly during Wednesday’s trading, ahead of tomorrow’s UK Gross Domestic Product (GDP) figures. The Pound has enjoyed a fine run over recent weeks, with GBP/AUD rates getting close to a 6 year high on multiple occasions. However, the AUD has found support under the 2 level and I do feel it will require a further shift in market conditions to tip rates above this threshold.

Tomorrow’s data is key for the UK, as a bullish reading is likely to solidify the Pound’s position. Similarly any dip below expectation could push GBP/AUD levels back towards 1.95, which would certainly bring some respite to those clients looking to sell AUD after a tough couple of weeks. With little data of note for Australia in the run up to the weekend, I anticipate tomorrow’s figures to carry even weight than usual, in determining GBP/AUD positions 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

GBP/AUD Rates Remain Volatile (Matthew Vassallo)

The recent volatility on GBP/AUD rates looks set to continue in the short-term, with many investors holding out for rates to spike back above 2. It did seem as if this was an inevitability earlier this week with rates spiking over 1.99 but as is the case with any volatile currency pair, conditions can change quickly and aggressively.

The AUD found market support under 2 and started to realign itself against Sterling. This move was exaggerated following the release of this morning’s UK Retail Sales figures, which came out worse than expected. Subsequently the AUD has moved by over two cents high to low, with GBP/AUD now floating around 1.96. Despite this dip we are still seeing some of the best levels of the past 6 years for any client looking to purchase AUD. with the Reserve Bank of Australia (RBA) as committed as ever to lowering the value of the AUD and a slowdown in China’s economy (China are Australia’s largest trade partners), it may be that this spike in value for the AUD is short-lived.

Looking ahead to next week and there is little data of note for Australia, so it is likely Thursday’s UK Gross Domestic Product (GDP) figures which are likely to dominate headlines and cause additional volatility on 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@currencies.co.uk

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

GBP/AUD have spiked up once again during Wednesday’s trading, with rates moving over 2 cents. This increased volatility is at least in part due to the latest UK unemployment figures which were released this morning. Figures came in better than expected at 5.7% and boosted Sterling’s value across the board.

The AUD has struggled for some time and with the Reserve Bank of Australia (RBA) unequivocally committed to devaluing the AUD in order to boost trade, it is not a surprise to see GBP/AUD trading close to a 6 year high. RBA governor Glenn Stevens recently spoke about how the stagnation of the Australian economy was of major concern and that the central bank’s ability to kick start the economy by lowering interest rates had ‘diminished considerably’, eluding to the fact that the RBA could not just continue to cut their base interest rate to counter on-going economic concerns.

Whilst the Bank of England (BoE) will not be keen to see Sterling’s value rise unopposed, they may have little options available to counter this and a move back above 2, at least in the short-term, is certainly a possibility.

Looking ahead and Friday’s UK Retail Sales figures are likely to dominate headlines for the rest of the trading week and could cause additional volatility on GBP/AUD exchange rates as we head into 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@currenciesco.uk

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

The recent positive trend for Sterling against the AUD is showing no signs of relenting, despite the pair hitting a fresh 5 and a half year high during this morning’s trading. The reason for this spike is, at least in part, due to the Australian unemployment figures released overnight. These showed that unemployment is standing at 6.4%, higher than the 6.2% prediction and this will cause further concerns over the Australian economy, which is already reeling following the slowdown in China’s economic growth and ultimately their demand for Australia’s vast supplies of raw materials.

The Reserve Bank of Australia (RBA) have stayed steadfast in their commitment to lower the AUD’s value, so will not be concerned by the current trend but the economic stagnation down-under is likely to raise alarm bells, as the Australian economy is so heavily reliant on its export trade, that any sustained slowdown in this area will be of grave concern.

Many investors will now be waiting for the 2 barrier to be breached and although this now looks likely, whether or not rates will hold above this in the medium to long-term is certainly debatable.

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 exchange rates have dipped during Wednesday morning’s trading, with the pair now floating around 1.84. A recent slowdown in China’s economic growth was of concern for the Australian economy, as China are their largest trade partners. The Australian economy is heavily reliant on its export industry so if this slows, the economy will suffer as a result.

However, today’s move has seen the AUD gain value against GBP. The reasoning for this could be attributed to Consumer Confidence figures released overnight in Australia, which came in better than previous. We also to consider this morning Bank of England (BoE) minutes which indicated that there is now a 9-0 vote against a hike in UK interest rates and this is likely to have dampened investor expectation and caused the Pound to drop.

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

GBP/AUD Overview

It’s been a volatile time for GBP/AUD exchange rates recently, with uncertainty surrounding the Australian economy handicapping any sustained spikes for the AUD. The AUD has started to realign itself following a poor run against the Pound with rates moving back toward 1.85, after trading above 1.90 over Christmas.

An improvement in Chinese data helped to alleviate that pressure and in fact it is the Asian markets, in particular China’s demand for Australia’s raw materials, which can drive AUD exchange rates. The Australian economy has always relied heavily on the export of its vast supplies of raw materials. If this demand slows then quite simply the Australian economy will suffer because of it.

We also need to consider Reserve Bank of Australia (RBA) governor Glenn Steven’s stance, as he feels the AUD is still overvalued and negatively affecting exports and it is likely that this feeling will be reflected in the market.

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 During Thursday’s Trading (Matthew Vassallo)

GBP/AUD rates have dipped again during Thursday’s trading, as the AUD continues its recovery against the Pound after a difficult few weeks. The Pound had gained significant momentum against the AUD, moving up to 1.92 just before the turn of the year. However, with the pair now floating around 1.86 the AUD has found market support and moved away from the near four year lows seen recently.

The Reserve Bank of Australia have been keen to see the AUD lose value, for fear of alienating their trade partners. Australia’s economy is heavily reliant on the export of its vast supply of raw materials and a strong AUD was having a negative effect on these trade arms. The Australian economy is also heavily linked to their largest trade partner China’s economy and the slowdown there over recent months has also handicapped the AUD somewhat.

Despite this latest move I do not anticipate a major realignment for the AUD and it is likely that the Pound will find support around 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

Will GBP/AUD Rates Hit 1.95? (Matthew Vassallo)

It’s been a volatile few days for GBP/AUD rates, with the Pound gaining value for much of this period. GBP/AUD rates moved back above 1.90 following the Reserve Bank of Australia’s comments regarding another possible interest rate cut and the RBA’s commitment to lowering the AUD’s value in order to enhance their exports.

With a slowdown in China’s economy negatively affecting the Australian economy due to their heavy trade links and the very realistic prospect of the RBA cutting interest rates again early next year, we could find GBP/AUD rates heading 1.95 before long.  A word of caution however, as this is not the first time GBP has threatened to break the current levels and each time it has put pressure on it the AUD has found support and realigned back towards 1.85.

The Pound meanwhile has been boosted by the Bank of England’s decision to raise growth forecasts for the UK economy for 2015 and beyond and this mornings better than expected Retail Sales figures have only enhanced this positive sentiment.

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 for 1.95 by Christmas? (Matthew Vassallo)

It’s been a volatile time for GBP/AUD exchange rates recently, with uncertainty surrounding the Australian economy handicapping any AUD spikes. Sterling has gathered momentum over recent weeks with the pair now floating around 1.90 on the exchange, providing some of the best buying levels of the past four years.

The Reserve Bank of Australia (RBA) have already stated they feel the AUD is overvalued and the aggressive move on GBP/AUD rates during yesterday’s trading, we saw over a cent swing with the Pound hitting 1.9073 before dropping away very quickly below 1.90, could be attributed to this. We also need to consider that the RBA could well cut Australian interest rates early in 2015, which is causing uncertainty amongst investors. Current rates already stand at a record low of 2.5% but this is likely to drop further, as the Australian central bank look for measures to combat on-going economic difficulties inside the Australian economy and further afield.

In fact it is the Asian markets, in particular China’s demand for Australia’s raw materials, which can drive AUD exchange rates. The Australian economy has always relied heavily on the export of its vast supplies of raw materials. If this demand slows then quite simply the Australian economy will suffer because of it.

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