GBPAUD USDAUD Transferring Australian Dollars Buying Australian Dollars Exchange Rates Australian Dollar Forecast AUD to GBP
The Aussie Dollar strengthened against Sterling following the 1% movement during yesterday’s session following the surprise 0.5% rate cut by the Reserve Bank of Australia. Investors are now looking to focus on the positive data that is coming from both the US and China. To me I believe that the rate cut has meant unwinding of positions for the AUD and money being moved to Sterling for the safe haven benefits both socially and for economic reasons. Although the UK base rate is only 0.5% and the lowest in history the UK is attractive for those who are risk averse.
The difference for exchanging AUD$ following the interest rate announcement was 1% or £1,900 on a AUD$300,000 currency transfer.
Chinese data out this week showed that manufacturing sector was the strongest in over a year and also the US showed that they grew for the second month in a row in April. It will be interesting to see what happens over the next month as the market takes a big breath following the rate cut and how Sterling Australian Dollar will perform. I still believe we will see 1.60 during May as the Pound looks as though it is gaining strength on most major currencies and therefore is likely to move towards the level of 1.60.
ANZ Banking Group posted its first half profit which grew by 10% to just under $3bn but also commented that its margins in Australia are slowing. However, it has been said that the RBA’s 50 basis point cut could result in a loss of $120mn over the next 6 months. As one of Australia’s leading banks this will clearly put on pressure on the AUD$ over the next few months.
I would be interested in hearing your ideas as to how the currency market is performing and for any other currency pairs you may be interested in please drop me a line Tom Holian [email protected]