Australian Dollar Exchange Rates after the Greek Election

AUDGBP Looks for a Low with PMI Data Ahead

Australian Dollar Exchange Rate Forecast GBPAUD AUDGBP Currency Information Buying Australian Dollars Selling Australian Dollars Best Rates GBP to AUD

The Greek elections are now finally over with the New Democracy party winning which is an important step for European stability. However, the Greeks have yet to form a majority government so will need to form a coalition deal which is imminent. This means the Greeks will continue with their austerity measures and continue to remain in the Eurozone. This has led to investors confidence and a strengthening of the Australian Dollar. After cutting interest rates, a slow down in the rate of growth in China and the previous fears of the European debt crisis the GBPAUD exchange rate had hit 1.60 a few weeks ago but since then the exchange rate has strengthened by almost six cents against Sterling.

The main mover for the next few weeks is likely to be the further chaos in Europe and any hints that the Reserve Bank of Australia may cut interest rates further even as soon as the next meeting in July. It is likely that following the recent funding for lending plan by the Bank of England could weigh on Sterling so excpect the currency markets to remain at these levels for the next few days. Also, keep your eyes on the Greek issues as we are not yet out of the woods owing to the fact that there is still a huge problem with debt across Europe so although the Greek news is positive for the global markets it is not the end of the story.

The G20 summit will be focusing on shoring up the global banking system and with the Federal Reserve due to meet on Wednesday we could see further strength for the Australian Dollar if the Fed proposes further economic stimulus. For up to date currency exchange rate information please do not hesitate to contact me Tom Holian [email protected] quoting ‘Australian Dollar Forecast’ for preferential exchange rates.