Tag Archives: GBP/AUD forecast

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

GBP/AUD Rates Drop Following RBA Minutes (Matthew Vassallo)

GBP/AUD rates have dropped during Tuesday morning’s trading, with the pair now floating around 1.93 on the exchange. We have seen Sterling drop against most of the major currency pairs this morning and with Bank of England (BoE) governor Mark Carney concerned over the current inflation levels in the UK, we may see Sterling lose some of its recent momentum over the coming days.

We also had the latest Reserve Bank of Australia (RBA) minutes released overnight, which indicated the central bank would cut rates further if necessary, despite concerns over house price inflation. This comes after the RBA kept interest rates on hold during their last vote, despite calls for another rate cut.

There’s a host of key economic data out for both the UK & Australia this week, starting with the latest UK unemployment figures and BoE minutes. Unemployment levels are expected to improve but if they come out worse than expected expect the Pound to lose further value. The BoE minutes are always considered a key market mover as they give us an insight into the central banks policies and may provide an indication of when the central bank will look to raise interest rates.

We also have the latest RBA bulletin overnight on Thursday but it is likely to be RBA governor Glenn Stevens speech on Friday, which will dominate headlines as we head into the weekend. He has been fairly downbeat of late do it will interesting to see if he continues to talk down the Australian economy, with the RBA committed to lowering the AUD’s value over recent 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 on mtv@currencies.co.uk

GBPAUD falls after RBA Minutes

GBPAUD has fallen following some better than expected Australian employment data, employment rose to 15.6k in February and this has helped the AUD to rise against sterling. Whilst longer term the rates are predicted to fall again – their interest rate that is – GBPAUD is likely to suffer in the short term due to the UK General Election.

If you need to buy or sell the Aussie in the future please speak to me to find out more about our specialist service which is all designed to help you get the most form the market. If you need anything further please email me Jonathan on jmw@currencies.co.uk

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

We’ve witnessed a lot of volatility on GBP/AUD rates of late and this trend looks set to continue in the short-term. The AUD had started to strengthen and for a time it looked as if the pair were heading back under 1.95. However, the Pound found further support early this week and the trend is once again heading back towards 2 on the exchange.

I do feel we will need to see another shift in market sentiment in order to breach this level but the Pound is gaining support across the board and it will be interesting to note over the coming days and weeks, whether the Australian economic data is strong enough to support the AUD under this level.

The Reserve Bank of Australia (RBA) are reluctant to cut their base rate further at this time, as the fear that artificially trying to drive up house prices could prove detrimental to their economic recovery and therefore it is likely interest rates will be kept on hold for the time being. It is more likely that the recent strong growth forecasts for China will help to support the AUD, due to Australia’s heavy trade links and considering we are still trading very close to a six year high on the pair, I would be tempted to consider my potion around the current levels if I had an upcoming AUD purchase.

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

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