The GBPAUD rates have moved by over 6 cents within the last 2 weeks. This movement makes a staggering difference to the cost of moving funds internationally, for example when buying £200,000 it has become over AUD $12,000 cheaper. Unfortunately the same cannot be said for people buying the Australian Dollar as rates have been falling. This change has come from a number of reasons including a weakening picture of the UK economy, stronger Australian data, China updates and equally news and speculation about the debt ceiling in the US.
The Reserve Bank of Australia recently signalled no change in its policy guidance assessment, which suggests recent hopes of a near term rate cut are unlikely to materialise. The expectation of a US debt deal soon has also further boosted the Aussie so I for one am now less optimistic of significant further gains for GBPAUD rates. I think the trend has now been set for GBPAUD weakness rather than strength over the coming weeks. Saying that however currency rates never move in a straight line so there will be opportunity s for both buyers and sellers to time their respective trade and by doing so save money.
Here we offer this pro-active service assisting our clients with this information. Days and events that are coming up that may help maximise the exchange rate while informing them of SPIKES and when levels have hit already set targets. If this is a service that you would to also benefit from please contact the auther – Steve Eakins – [email protected]
Over the next few days the key data releases that could easily have an impact on the rate of exchange are:
- Overnight we have RBA – Business Confidence figures. This is expected to show an improvement resulting in potential gains for AUD sellers GBPAUD expected to fall 0.25% – making AUD$100,000 £250 more expensive.
- Thursday UK Retail figures due at 10:30 BST – gains are expected off the back of this release for the Pound GBPAUD up by 0.5% – making AUD$100,000 £500 cheaper.
- Thursday evening/Friday morning – RBA Governor speech. GBPAUD falling 0.5% – making AUD$100,000 £500 more expensive.
Plus on top of the above we also have a potential catalysts from the US government impacting this pairing. The theory is that as many traders have invested in the AUD due to its higher returns while the US is closed, once they re-open money will flow back and create AUD weakness. Depending on what level of agreement is put into place; a short term gap filler or a longer term plan will also have an impact on the levels of movement we could see – be very aware of this release and the potential consequences to your trade.
If you are trading either of these currencies and would like more information on our live forecasts, live prices, rate alerts or SPIKE NOTIFICATIONS please make contact with myself – Steve Eakins – via email at [email protected] or by calling the number on the top of this page to get through directly to the trading floor. We have been helping people for over 12 years achieve the best exchange rate both against the banks and other brokers. Simply put if we could not help – we would not be in business.