GBPAUD hits 4 month low

AUDGBP Finds Support After RBA Meeting Minutes

Australian Dollar Forecast Best Rates GBP to AUD Buying Australian Dollars with Pounds

The GBPAUD exchange rate has hit a 4 month low of 1.5151 this afternoon as problems persist in the UK. Some forecasters are claiming that second quarter UK GDP will show a reduction of -0.2% which will keep the UK in recession. Further with the LIBOR scandal in the headlines investors are seemingly hesitant with the Pound. Also with GBPEUR exchange rates hitting close to 4 year highs and EURUSD the lowest for two years we are seeing possible signs that carry trading is affecting the exchange rates. This is whereby investors borrow money is a low yielding currency such as the Euro and place it into the Australian Dollar which will provide a better rate of return.

As the Reserve Bank of Australia kept interest rates on hold last week we could see further strengthening for the AUD until a tighter monetary policy is implemented. Also, as the UK decided to go ahead with further QE of £50bn Sterling has lost its appeal at least for the time being. With iron ore and coal exports till performing well fuelled by Chinese demand and growth this has seen the AUDUSD rate touch close to the highest level is almost 30 years. If you have a need to transfer Australian Dollars and want to compare exchange rates against your currency broker please contact me Tom Holian [email protected]