Australian Dollar Forecast Set for Bleak End to 2020

Australian Dollar Forecast Set for Bleak End to 2020

Amidst all the global panic and financial disruption that the pandemic has brought this year, economic activity has taken a very sudden downward trend after the Australian government revealed that its national budget deficit had reached its worst levels since World War II with a fallout of A$86bn (£47bn). Despite these shocking developments, Treasurer Josh Frydenberg also announced that 2021 is looking even worse as the shortfall could breach A$184bn. It is not surprising that Australia had been hard-hit by the Coronavirus as the...
Will Sterling Weakness Continue to Help the AUD to GBP Rate Improve?

Will Sterling Weakness Continue to Help the AUD to GBP Rate Improve?

Recent price movement for the Australian Dollar to British Pound has been favouring the AUD, as the Pound has been weakening for a number of reasons which we will touch on shortly. The positive movement for AUD/GBP has resulted in the pair trading almost at 1-year highs. This morning the pair traded well within half a cent from the annual high of 0.5649, and with the pair in positive territory at the moment I wouldn’t be surprised to see this annual high tested soon. Negative...
AUDGBP Makes Gains Following Increased Risk Sentiment

AUDGBP Makes Gains Following Increased Risk Sentiment

The Australian dollar strengthened across the board against its major counterparts on Tuesday, with risk sentiment risking among investors. Two of the main drivers behind AUDGBP, AUDEUR and AUDUSD gaining in value were the EU’s agreement on a €750bn coronavirus recovery plan, coupled with comments in a speech by RBA governor Philip Lowe. AUD also started the week off on the front foot, on the back of news that Coronavirus vaccine testing at Oxford University is showing signs of creating immunity to the virus. As...
AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

Australian Dollar Forecast: Will AUD Weaken This Week?

The Australian dollar forecast for the first half of the week is showing plenty of promise for added AUD volatility with Minutes from the RBA’s most recent meeting released over night ahead tomorrow’s potentially pivotal retail sales release and lending conditions report from Westpac. Insight into consumer confidence is often used as a barometer by investors for economic growth in the months and years ahead and so Wednesday’s releases might be keenly watched. With fresh outbreaks across Australia’s most populous states mounting pressure on...
First Covid-19 Economic Update Due This Week, What Could Happen to AUD Exchange Rates?

First Covid-19 Economic Update Due This Week, What Could Happen to AUD Exchange Rates?

The first economic update since the Coronavirus outbreak is due on Thursday, in the form of the July Economic Statement. The Australian Government will provide a full update of the state of the economy and hopefully some forecast as to where they think the countries economy is headed. Following this release, AUD to GBP volatility could be expected. There is a certain expectation that the damage done by Coronavirus will be severe, however it will be how quickly the Government believe the recovery will...
Australian Dollar Remains Resilient Despite Unemployment

Australian Dollar Remains Resilient Despite Unemployment

Australian Dollar exchange rates have remained stable against the USD, EUR and GBP over the course of the trading week and this has been despite poor unemployment figures released yesterday. Stats on Thursday showed that unemployment had risen to 7.4% in June, which is the highest level seen in Australia since 1988 and casts a worrying forecast for future economic performance. Youth unemployment seems to be rising with the greatest pace, sitting at 16.4% and with 17.1% of young males currently out of work. Even with this...
A Good Start to the Week for AUDGBP

A Good Start to the Week for AUDGBP

It's been a good start to the week for AUDGBP, as mid-market exchange rates have increased from 0.55 to 0.5556. UK Growth Causes Sterling to Lose Value</h2? Yesterday the UK released their latest GDP numbers and unfortunately for the UK they disappointed. The economy grew at a slower pace than expected in May diminishing the hopes of a V shaped recovery. The office for National Statistics released the number at 1.8% when the forecast was for 5%. This data release follows the biggest fall in GDP...
What is Stopping the Australian Dollar From Falling?

What is Stopping the Australian Dollar From Falling?

Pound holders enjoyed more than a 1% rise throughout last week as rigid lockdown measures were reimposed in certain areas of Australia. This caused the markets to grow slightly wary of the wider implications for the country should these measures fail to prevent a second outbreak Downunder. In the scheme of things, it is quite interesting to see that despite new daily cases accelerating to over 270 in Victoria during yesterday's trading, the Australian dollar has managed to hold its ground against its major...
AUDGBP Starts Week Close to One Month Low

AUDGBP Starts Week Close to One Month Low

Sterling has started this week stronger with the AUDGBP currently at the 0.5524 level against the Aussie which is the first time in just over three weeks. Following some positive developments in Brexit talks last week the pound has been able to make small gains. Over the next few weeks if the Brexit talks continue on a positive trajectory then there is a chance that we could see further momentum for Sterling. At the start of April the AUDGBP rate was just below the...
AUDGBP Drops as COVID-19 Infections Climb

AUDGBP: Australian Fears as Virus Cases Jump

Australia has reintroduced lockdowns in the Victoria area after new COVID-19 cases appear continue to rise. There has been a report today of 288 new cases, the highest on record for any part of the country since the pandemic started. Australia was acknowledged as one of the best handlers of the initial outbreak as they very swiftly stopped a major outbreak. However as they have started to reopen their borders it appears there could be trickier times ahead. The only people allowed to re-enter the...