Australian Dollar Focus

AUDGBP Tests 0.5600 Once More as BoE Cuts QE

GBPAUD Australian Dollar Exchange Rate Forecast Australian Dollar Strength Best Rates GBP to AUD

Both the Australian Dollar and the New Zealand Dollar have strengthened since the Greek election news from Sunday and there is a strong likelihood that there will be more appetite for both currencies. With Greece now likely to stay in the Eurozone this has allowed confidence to return to the markets. Mineral exploration spending has hit a record high in Australia and with a strong performance in the services sector in New Zealand it potentially provides both currencies with more opportunity to strengthen against the Pound. The Reserve Bank of Australia’s minutes released this morning showed it was close decision to cut interest rates so it is more likely that there will be no change next month.

However, one problem that the Australian Dollar exchange rate could face is that if Spanish bonds continue to get close to 7% they could be in line for the next EU Bailout which could dent the recent strengthening for the Aussie Dollar. The US Federal Reserve meet tonight to discuss whether or not to put more stimulus into the US economy which could harm the Australian Dollar. However, if the FOMC do not make any movements we could see the AUD strengthen against both Sterling and the US Dollar. Currently GBPAUD is sitting at 1.5460 on the Interbank level.

If you have a currency requirement to make and would like to know how to save money when buying Australian Dollars please do not hesitate to contact me Tom Holian quoting ‘Australian Dollar Forecast.’