Tag Archives: GBP/AUD forecast

GBP/AUD Rates Remain Volatile (Matthew Vassallo)

It’s been a volatile few weeks for GBP/AUD exchange rates but the main theme has being continued weakness in the value of the AUD against GBP. The pair have moved over 13 cents in the past couple of weeks, a huge swing which would equate to the difference of over 22,500 AUD on a 200,000 GBP/AUD currency transfer. This is a key example of why it is essential to stay in close contact with your currency broker, to ensure opportunities like these are not missed.

The reasons for this aggressive move are varied but a key component are the recent Reserve Bank of Australia (RBA) minutes, coupled with poor economic data from China. The RBA still feel the AUD is too strong, which is negatively affecting their export industry and as soon as a central bank admits this, it is likely the prospective currency will weaken as a result. Add to this concern over a slowdown in Chinese economic growth and it has conspired to push GBP/AUD back to the current levels. I do not expect this trend to continue back to the four year highs witnessed last year but similarly the AUD may struggle to gain any serious momentum until there is another shift in market conditions and a change of stance by the RBA.

Looking ahead and we have a Financial Stability review overnight, followed by the RBA annual report and RBA governor Glen Stevens speech tomorrow. These are likely to be key market movers and if there is any change in stance by the RBA we could see the AUD start to recover some of the ground it’s lost against GBP over the past couple of weeks.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movers, 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

AUD still weakening but is more settled. (Ben Amrany)

The Australian Dollar has been extremely volatile of late with declines against a host of the majors but most notably against the pound. We have seen over a thirteen cent high to low movement in the last 2 weeks with the pound now at the high point representing good buying opportunities.

The Scottish referendum result has given the pound a boost but recent comments by the Reserve Bank of Australia and the lower than expected economic data from China has contributed to the Aussies declines. The close trading ties between the two countries mean that when there is a slowdown in economic growth for China the AUD tends to weaken as it can hurt their exports.

Looking ahead the Financial stability report over night followed by the RBA Glenn Stevens speech the day after is likely to keep the AUD fairly volatile. Any change in stance by Glenn Stevens with regards to interest rates could assist the AUD to recover but I feel the pound will remain healthy and try and push another 1% out of the Dollar this week.

If you require assistance to buy or sell the AUD over the coming weeks or months why not contact myself Ben Amrany at bma@currencies.co.uk. I can explain all the options available to you to try and help you minimise your risk to the currency markets and help you beat teh rates your bank will offer you here in the UK and in Australia.

Thank you for reading.

Ben Amrany

bma@currencies.co.uk

GBP/AUD Rates Move Back Towards 1.80 (Matthew Vassallo)

It’s been a volatile few days for GBP/AUD exchange rates, with the general theme being a weakness in the value of the AUD against GBP. GBP/AUD rates have moved over 7 cents from last week and at yesterday’s low had moved back above 1.80 against Sterling.

The recent Reserve Bank of Australia (RBA) minutes, coupled with poor data from China has hit the AUD hard just as it seemed it was gaining some momentum after a difficult 12 months against most of the other major currencies. The RBA still felt the AUD was too strong which was negatively affecting their once affluent export industry. Add to this concerns over a slowdown in Chinese economic growth and it has conspired to push GBP/AUD back to the current levels. In fact we have even seen a positive move for the AUD today due to mixed inflation data for the UK, which has helped push the currency pair back under 1.80 on the exchange.

With all eyes now focused on Thursday’s Scottish referendum we could see further volatility on GBP/AUD as Sterling is likely to be heavily affected by the result. We also have the latest RBA report and annual bulletin overnight on Thursday so expect further movement following these releases.

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 Fall Ahead of Scottish Referendum (Matthew Vassallo)

GBP/AUD rates have dropped this week, with levels now dropping below 1.74 on the exchange. This move came about following a poll that indicated support for Scottish independence had grown, with figures indicating there was now 51% in favour of the Yes vote. This news immediately caused Sterling levels to drop, with the uncertainty over the economic repercussions of a breakaway causing the Pound to lose value against all the major currencies, with over a cent lost against the AUD from this week’s high.

The Pound has started to gain support around the current levels this morning and we may see a further realignment following positive UK, following positive Industrial and Manufacturing Production figures. We also had a speech by BoE governor Mark Carney who indicated that UK interest rates may be rising sooner than expected, news which is likely to counter any further Sterling losses.

Looking ahead to the rest of the trading week and the UK inflation report on Wednesday is worth monitoring, as is the Australian unemployment data which is released overnight on Thursday. These releases are likely to be key in determining any short-term spikes on GBP/AUD rates away from the current levels.

If you have an upcoming currency requirement and would like to be kept up to date with the latest key 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

The best rates all year to sell AUD and buy GBP

The recent losses on the pound as a result of the Scottish referendum has presented to anyone who needs to sell AUD for GBP some very attractive rates, the best that we have seen all year. Were we to see further improvements we would need to go back almost a year to get to a time when the rate to sell AUD for GBP has been so good.

Given that the RBA (Reserve Bank Australia) has already indicated it does not want the AUD too strong, we could see the AUD weaken again in the future. For the latest news and information please email me jmw@currencies.co.uk

GBP/AUD Drops Below 1.77 (Matthew Vassallo)

GBP/AUD rates have dipped during Wednesday morning’s trading, with rates dropping below 1.77 on the exchange. This move has come following the release of the latest Reserve Bank of Australia (RBA) interest rate decision over night. Despite the fact the RBA kept their base interest rate on hold at 2.5%, governor Glenn Stevens made an address in which he was fairly bullish about the Australian economic recovery and this seems to have given the AUD a boost, which has been reflected in this morning’s market movement. Mr Stevens also alluded to the fact the RBA would keep rates on hold for a sustained period, news that will help to alleviate fears that the RBA may cut rates again in the short-term.

Looking ahead to the rest of the trading week and tomorrow we have the latest Bank of England (BoE) interest rate decision and monetary policy statements. Whilst we anticipate rates will be kept on hold any indication that they may rise sooner than expected is likely to give the Pound a boost. We also have the latest set of Australian Retail Sales figures being released overnight, which coulod cause the AUD to spike before European trading opens tomorrow.

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 Levels Drop Ahead of Tomorrow’s BoE Minutes (Matthew Vassallo)

GBP/AUD levels have continued to drop during Tuesday’s trading, moving the currency pair back below 1.79 on the exchange. As discussed in today’s earlier post the Pound has found life tough going today, following worse than expected UK inflation figures. This data stalled the Pound’s momentum from yesterday and the AUD benefitted from it. There was confidence in the AUD overnight following the latest Reserve Bank of Australia (RBA) minutes, which indicated that the Australian economy was seeing a steady improvement, news which should help protect the AUD from any further major losses.

I expect further volatility on the pair over the coming days, with a number of key economic data releases to note. Tomorrow see’s the release of the latest Bank of England (BoE) minutes, which give us a key insight into our central bank’s latest policy meeting. It will be interesting to see whether any of its members voted for an interest hike, considering the mixed messages BoE governor Mark Carney has delivered on the subject of late. With further AUD data out overnight on Wednesday and then UK Retail Sales figures on Thursday, expect further volatility on GBP/AUD before the end of the trading week.

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

The Aussie has strengthened – AUD selling opportunity

The Aussie has strengthened against a much weaker pound this week. The outlook would appear to favour the Aussie over the pound in the short term and if you need to sell Australian dollars for sterling, this is a very good time and close to some of the best rates we have had in recent years. The Aussie has a strong habit of strengthening against other currencies owing to its prominence as a high yielding currency. That means it offers a higher return to investors who invest there than other currencies. This means when investor sentiment is strong (as now) the currency performs well.

If you need to buy or sell Australian dollars this is well worth being aware of, for more information please email me Jonathan on jmw@currencies.co.uk

Will Aussie Weakness persist?

The Aussie dollar has fallen down to lower levels due to the Unemployment data Thursday showing a surprise increase in Unemployment down under. The expectation had been for levels to remain firm at 6.0% but the release showed 6.4% which makes a big difference. The expectations have now changed on the Australian dollar as we had previously expected an accommodating stance by the RBA (Reserve Bank of Australia) but if Unemployment is spiking like this it will put pressure on the RBA to take some action, possibly some easing measures including cutting interest rates.

For more information on the AUD forecast please contact me directly on jmw@currencies.co.uk

GBP/AUD Rises Following UK PMI Data (Matthew Vassallo)

GBP/AUD rates have spiked back up during Tuesday’s trading, following positive UK PMI Services data this morning. The figure released of 59.1 came in above the expected 57.9 and immediately gave Sterling a boost against the AUD.

The markets had been poised overnight for the release of the latest Reserve Bank of Australia (RBA) interest rate decision and subsequent statement. Interest rates were kept on hold at 2.5% as expected but RBA governor Glen Stevens alluded to the fact they would remain on hold for the foreseeable future, which is likely to handicap any AUD spikes in the short-term. With GBP/AUD rates moving back through 1.81 on the exchange today, it seems to have diluted any hope that last week’s positive momentum for the AUD was going to move it below 1.80 against Sterling anytime soon.

Looking ahead to the rest of the week and the key day is likely to be Thursday. Overnight we have the release of the latest Australian unemployment figures and then the Bank of England (BoE) interest rate decision and monetary policy statement. These are usually key market and are likely to cause additional market volatility.

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