GBPAUD AUDGBP USDAUD AUDUSD Converting Australian Dollars Exchange Rate Forecast Moving Money to Australia Sending Australian Dollars GBP to AUD Best Rates
The GBPAUD exchange rate is once again hitting levels 1.61 today following the EU summit currently being held in Brussels. The summit is intended to come up with a plan to resolve the European Debt Crisis but as yet no solution has been offered. the hopes for the meeting is to create a pro-growth approach and getting the ECB to issue Eurobonds in an attempt to support the Euro. However, the previous Greek PM Lucas Papademos’s comments that Greece may leave the Eurozone have added to the negative feeling currently being felt across the continent. The Sterling rate to buy Australian Dollars has ranged between 1.5993-1.6123 during today trading session so far.
The UK GDP Q1 revised figures came out at -0.3% which was worse than the previous estimate but this has not been reflected in the currency market. It seems to me that most investors are waiting to see what will happen with the summit before there is the next swing for the currency market. However, with the UK officially in recession and the Queen’s Jubilee next month with two additional bank holidays there is a risk to output for the UK which could in turn harm our GDP for Q2 and potentially keep us in recession. There is potential for the UK to perform further QE which is currently at £325bn and Christine Lagarde from the IMF suggested there is room to cut interest rates in the UK but she has also back the government’s austerity drive aimed at cutting the UK budget deficit.t
China’s May PMI for manufacturing has dropped to 48.7 the lowest reading in a year after April’s figure of 49.3 showing that economic growth in China is slowing down. the Chinese government have intervened recently by increasing public housing, investment and consumption but it is clear that there is a slowdown which could in turn weaken the Australian Dollar against the Pound. With Europe slowing down as well this could harm China’s growth via exports and which could also harm the Australian Dollar as it relies so heavily on China. I believe that the Australian Dollar Forecast will remain between 1.60-1.62 until we see what’s happening with the issues surrounding Europe.
For further information please do not hesitate to contact me Tom Holian [email protected] quoting ‘Australian Dollar Forecast’ in the subject title for preferential exchange rates.