Australian Dollar Forecast Looks Strong as we End the Month

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

The Australian dollar forecast has continued to look rather positive vs Sterling as risk appetite has been rising since the height of the global pandemic.

China has reopened and with cases in Australia at small numbers the Australian economy is doing well. Overnight we have seen risk appetite increase with Japanese stocks rising by over 2% following the Prime Minister Abe’s suggestion that further fiscal stimulus will be coming. Also, China’s Central Bank Governor has suggested that they will also be carrying on with their monetary policy. This has seen the Australian dollar strengthen overnight against the pound which is good news for anyone looking to sell Australian dollars to buy pounds.

The slowdown of COVID-19 in developed countries has led to a gradual improvement in various economies and with many countries in the process of removing their lockdown measures this is helping those countries which appear to be one step ahead including the Australian dollar.

What Impact Will the BoE’s Next Meeting have on AUDGBP Rates?

One important factor that could influence the pound vs Australian dollar exchange rate is that if the impending Bank of England (BoE) decision due on 18th June. There are suggestions that the Bank of England are considering negative interest rates which could put further pressure on sterling exchange rates including vs the Australian dollar.

Bank of England member Andy Haldane is due to be speaking today on the CBI webinar so the markets will be keeping a close eye out on any comments about what the Bank of England may consider at next month’s meeting.

US Economic data to set the trend for the Australian Dollar vs the Pound

Thursday could be the biggest day of the week for the Australian Dollar exchange rate as the US will release Jobless Claims data as well as their revised Gross Domestic Product (GDP) figure.

US jobless claims have risen above 25 million since the outbreak and are expected to rise by a further 2 million when the data is released in Thursday afternoon. With US GDP data having fallen to -4.8% as the world’s leading economy the revised figures are likely to have a big impact on global currency markets. If the data shows a fall on this figure this could put a brief end to the Australian Dollar’s recent strength against the Pound as it could hinder global risk appetite if the figures reveal further concerns. Therefore, if you’re planning to make a currency transfer involving Australian Dollars then pay close attention to Thursday’s data announcements in the US as they could cause a lot of volatility for the GBPAUD exchange rate.

Later today the US will announce its latest set of Consumer Confidence data as well as housing market data for April. The Consumer Confidence data could see a rise as it’s taken from May. However, the housing market is from April which is likely to see a sharp decline.

With AUDGBP exchange rates currently close to their best levels to buy pounds since October 2019 it may be worth taking advantage of current levels if you’re considering selling Australian dollars to buy pounds in the near future.

If you have a currency transfer to make and would like to discuss how these factors may impact your exchange rate, get in touch using the form below. I’ll be happy to contact your personally and discuss the options available.