Sterling Australian Dollar Exchange Rate Drops to 1.5877

AUD GBP Flat with Aussie Retail Sales Data Due

GBPAUD AUDUSD AUDGBP USDAUD Buying Australian Dollars Exchange Rate Forecast Sterling Australian Dollar Australian Dollar Forecast GBP to AUD Australian Dollar Strength

The Sterling Australian Dollar exchange rate (GBPAUD) has dropped to its lowest level in a while as Greek fears has eased the currency markets. The AUD has strengthened against Sterling following weekend elections in Greece which put the conservative New Democracy party ahead of the leftist Syriza party. With the confidence returning to Europe, at least in the short term with a lot of stock indices improving by 1% today, investors has been attracted to the yields that the Australian Dollar offers. This week is a busy one for the Australian Dollar as we have retail sales and indication of the Quarter 1 GDP due out. As China has slowed down in recent months this has negatively affected thje commodity rich country of Australia and therefore a negative movement for AUDGBP. The recent cutting of the Australian interest rate to 3.75% from 4.25% was aimed at improving the Australian economy which has seen signs of slowing since the turn of the year. Indeed, the AUDUSD has fallen by as much as 10 cents since early March.

All eyes will conitune to focus on the Greek elections and any large exchange rate movement may be limited between now and then. With elections due to take place on 17th June if the Greeks can form a new govenemnt and herefore agree to the austerity measues suggested by the EU Bailout Fund we could see a strenghtening of the Australian Dollar exchange rate against the Pound as investors look to maximise their return with high interest rates.

This week we see the release of Australian new homes sales. The previous figure was 3% so any fluctuation could see a little volatility and Wednesday we teh release of Retail Sales with expectations for a drop from 0.9% to 0.2%. For more information about dealing with a long established currency broker please do not hesitate to contact me Tom Holian [email protected] quoting ‘Australian Dollar Forecast’ in the subject title.