Exchange rates and Foreign Exchange related Articles are posted in this Category

Australian Dollar Hits A One Year Low – Why exhange rates matter

By |June 9th, 2013|

Currency exchange rates are something that many folks won’t typically be interested in unless of course you were looking to calculate how many beers your home currency will buy you when traveling abroad on holiday.

Moving to the other side of the world with all of your worldly possessions however means that exchange rates can play a bigger part in how much you’ll be worth when moving to Australia.

As an example, back in February last year 1 UK pound would but you approximately $1.47 Australian dollars. Today however the pound is much stronger with 1 UK pound now buying $1.63 Australian Dollars. […]

GBP to AUD Exchange rates

By |November 2nd, 2012|

It should be a good time to convert some of your British pounds to Australian Dollars. With mixed data coming from China and a clear signal from the Reserve Bank of Australia that interest rates are on hold for now, there is every reason to see further weakness in the Australian Dollar.

Having said all that, it isn’t happening right now. The Sterling – Australian Dollar exchange rate is in an uneasy stubborn equilibrium in the middle of a range it has occupied for the last 6 months.

Support for the Pound around 1.5350 is very evident and Aussie Dollar buyers can be found lurking around 1.5650 and 1.5850. If we do get a break to higher levels, 1.60 is the big psychological barrier which ought to cap this pair for now. […]

Australian dollar suffers with exchange rate of 1.56 forecast against sterling.

By |September 7th, 2012|

Since bottoming near 1.4700 in early August, the GBP to AUD exchange rates have rallied 17 of the past 21 days, including 7 consecutive days (click thumbnail to the left for a larger version).

Even though rates would probably be considered “overbought” on the daily chart the news is going to be of some relief to those of you looking to transfer some of your hard earned cash to foreign Australian shores.

One of the key reasons for the weakening of the Australian dollar is due to the way in which the Australian GDP figure undershot expectations.

“The Australian GDP figure for Q1 was revised higher to 1.4%, the news from Q2 was rather more disappointing, coming in at 0.6%. Certainly George Osborne would give his right arm for such a growth figure but the bar is set rather higher for Australia’s healthier economy and 0.6% doesn’t quite cut the mustard. […]

AUD to GBP Exchange Rates

By |July 25th, 2012|

The Australian Dollar is gaining support from international investors, running from the fear of further European turmoil and seeking the safety of the Australian economy. This is having an inpact on the AUD to GBP Exchange Rates.

Now that the Reserve Bank of Australia has effectively removed any plans for further interest rate cuts, the base rate in Australia has a lot of appeal to investors who can borrow at virtually 0% elsewhere.

Sterling isn’t completely capitulating because it does have a certain safe haven appeal alongside but not within the Eurozone but the pound hasn’t been able to withstand the onslaught of Aussie Dollar buying. […]

Australian Dollar Exchange Rates – Time To Buy?

By |June 29th, 2012|

The Australian Dollar to GB Pound exchange rates have seen some changes in the past few weeks.

Once again the debate raged as to whether the Reserve Bank of Australia would cut interest rates by 0.25% or 0.5% at their 5th of June meeting, following May’s 50 basis point cut. They actually cut rates by 0.25% to 3.5% which is the lowest levels since the height of the financial crisis.

The ensuing minutes from the meeting, suggested that the decision to cut rates further was finely balanced, as the economic news in Australia had been mixed but the deterioration of the situation in Europe warranted further action.

The RBA suggested “they expect the impact of the recent rate cuts to begin filtering through to the wider economy in the coming months” (it is commonly accepted that any adjustment to interest rates takes approx 18 months to have an impact on the wider economy). […]

GBP to Australian Dollar Exchange Rates

By |June 19th, 2012|

The expectation of lower interest rates in Australia and the slowing of the Chinese economy are both weighing on the Australian Dollar but not enough to see it weaken against the Pound.

Sterling is under pressure; you can see it in the correction from A$ 1.62 to A$ 1.54 in the last 3 weeks or so and the charts suggest we will see a further deterioration in the Sterling Australian Dollar exchange rate over the days ahead.

A target of A$ 1.5375 is highlighted by the 50% Fibonacci retracement and by the 200 day moving average. However, the caveat is that this all depends on what happens in Europe. Greece didn’t in fact vote itself out of the Eurozone for now but Spain may still drown in its own debt. […]

UK Pound Starts To Strengthen Against The Australian Dollar

By |May 24th, 2012|

The suggestion that the reserve Bank of Australia may make further interest rate cuts in the months ahead is weighing on the value of the Australian Dollar. So too is the slowdown in Chinese economic activity.

Also influential is the change of heart amongst international investors who are less inclined to buy into the high yielding interest rates that Australia offers because they are fearful of events in Europe undermining the Aussie Dollar and causing them to lose money in exchange rate movements. […]

Australian Dollar Vs UK Pound – Time To Buy?

By |April 30th, 2012|

Following this weeks’ weaker than expected consumer price inflation figure (up 1.6% from a year ago) for Australia’s first quarter, nearly every analyst is predicting an interest rate cut from the Reserve Bank of Australia (RBA) at their 1st of May meeting. The main debate seems to centre on whether the rate cut will 25 or 50 basis points.

Paul Keating, Australian Prime Minister (1991-1996) feared that Australia was risking becoming over reliant on exports which would leave living standards vulnerable and volatile. Over recent year’s this fear has abated as the Aussie economy has grown at an average rate of 3% a year over the last decade. […]

Australian Dollar – Is it time to buy and sell?

By |April 2nd, 2012|

Finally the Pound Australian Dollar (GBPAUD) exchange rate has rallied which, having been months now since I last wrote that, I am guessing is a welcome relief to witness the Aussie Dollar selling off for a change.

The trigger has not been Europe but China which is Australia’s single biggest export market. Since the last research paper the Chinese Premier downgraded growth in 2012 from 8.0% to 7.5%. […]

Australian Dollar Has Never Been Stronger – Now What?

By |March 6th, 2012|

The folks over at Halo Financial recently published a really useful technical analysis of the Australian Dollar and the approprateness of buying or selling Australian Dollars based on its current strength

Key points taken from the document are as follows:

The focus for the Australian Dollar was / is and no doubt will be:

1) Reserve Bank of Australia (RBA) interest rate policy and the impact of the Reserve bank announcing today to keep the interest rates on hold.

2) US Federal Reserve interest rate policy/asset purchase program extension or otherwise based on the ongoing US economic growth indicators – Fed Chairman Ben Bernanke’s testimony this week was interesting because there was no talk of QE3 and risk assets sold off. […]

High Interest Rates Keep Australian Dollar Strong

By |February 15th, 2012|

The Australian Dollar has benefitted from very high interest rates compared with the rest of the advanced global economies for the quite some time now.

Australian interest rates are currently at 4.25% making the carry trade attractive to investors who can only achieve interest rates of 0.5% in the UK, and even less in the United States and Japan.

Most were expecting the Reserve Bank of Australia (RBA) to cut interest rates last week by at least 25 basis points therefore reducing the yield on the carry trade which should in theory weaken the Australian Dollar. Interest rates were left on hold which sent the Australian Dollar soaring to new highs early in the week. […]

Australian Dollar Currency Exchange – Hits 27 Year High

By |February 8th, 2012|

I am sticking with very long term charts for the Sterling – Australian Dollar exchange rate because we are into uncharted territory on anything shorter term.

As you can see from the chart (Click for larger version), not since 1985 has the Australian Dollar been so strong against the Pound.

The reasons the Aussie Dollar is so strong are that the continuing success of the Chinese economy is boosting Australian raw material exports and investors around the globe are getting a little more adventurous and are buying into the 4.25% base rate in Australia. […]

Pound More Stable Against The Australian Dollar

By |January 16th, 2012|

The Pound has remained relatively stable against the Australian Dollar for the past 6 months or so. There is very clear technical support at A$1.48 which came into play when the Pound fell below the previous support at A$1.49 a few days ago.

As you can see, A$ 1.48 provided support through July and August and, considering the Pound is oversold, as shown by the RSI measure at the bottom of this chart, we may well see this support level hold again.

Sterling, as mentioned elsewhere in this report, is struggling due to the UK’s relationship with Europe and that will continue to be the case until we start to see stronger UK data and perhaps until Europe starts to sort its problems out. […]

GBP to Australian Dollar Exchange Rates – Pound Continues to Weaken

By |December 6th, 2011|

Events outside Australia are having a far greater influence on the Aussie Dollar than anything from within. We had some poor housing and retail sales data from Australia earlier in the week but that was largely ignored as investors preferred to focus on the slightly improved tone from the Eurozone.

That gave some cause for optimism which was all it took to strengthen the Aussie Dollar from the test of 1.60 against the Pound on Friday to a low of 1.52 we saw on the dip on Wednesday.

Things have stabilised a little but the Australian Dollar is on the front foot and the Pound is suffering from concern over the state of the UK government’s finances. […]

AUD to GBP exchange rates – Time to buy?

By |November 8th, 2011|

We were all hoping to see the RBA cut interest rates before the end of 2011 and our patience was rewarded on Tuesday when they cut rates by 0.25% to 4.5%. Obviously the Aussie weakened as a result, and the market began speculating on whether there would be an additional 0.25% in the December meeting.

Last night they reduced their forecasts for growth, a stark difference in the tone from the previous quarters outlook, down from 4% to 3.25% for this financial year and down from 3.75% to 3.25% for next. Inflation forecasts were downwardly revised to 2.5% until June 2013 from 3-3.25% back in August. […]

Uncertainty Around The EURO Causing AUD Weakness

By |September 20th, 2011|

The Aussie Dollar has been a roller coaster ride of late with events around the world dictating short term moves in the currency.

It has been widely publicised that Australia is the only major economy to have avoided a recession during the current financial crisis and economic growth rebounded strongly in the second quarter of the year with growth of 1.2%, which totally erased the 0.9% drop in Q1.

The Reserve Bank of Australia left rates on hold again this month, warning that uncertainty in Europe and the US risked damaging business and investor sentiment in Australia. […]