Best Exchange Rates

Home pages - full list (A-Z)


AUD/USD Forecast at $0.75 in 3 Months’ Time; Potential for Extreme AUD/GBP Moves on Wednesday

The Australian dollar has offered broad stability in recent days—a welcome change from last week’s sharp decline. The Aussie will likely trade higher over the coming months, Goldman Sachs has said, although anything goes for AUD/GBP on Wednesday as a vote of no confidence in the British Prime Minister takes place.

Currency-News AUD GBP NZD USD
Email share     Facebook     LinkedIn    Twitter
  Australian Dollar News and Forecasts

The Australian dollar continues to hold its ground against the US dollar at or near $0.72.

Australian dollar bulls watched unhappily last week as the currency fell quickly away from $0.74 following the release of disappointing economic growth numbers and as traders chose safer assets amid a sell-off in global equity markets.

Against the New Zealand dollar—by far the best performing major currency since November 1st—the Aussie continues to rally away from Monday’s long-term lows; it traded during Wednesday’s Asian session as high as $N1.0528.

AUD to USD - 1 Week chart - Latest
AUD/USD - 1 Week Chart - Latest

Against the British pound, like everything else, the Australian dollar has done extremely well of late; although, at £0.574, it remains down slightly on Monday’s 11-month high of £0.581.

Readers be warned, there is potential for AUD/GBP to skyrocket on Wednesday evening should Conservative Party members declare no confidence in British Prime Minister Theresa May, or fall should she receive party members’ backing. It was announced on Wednesday morning that May must face a same-day vote of no confidence—scheduled for 18:00-20:00 GMT—after 48 members of her party submitted no-confidence letters to the head of the 1922 committee.

Speaking on Tuesday on the Australian dollar’s trade-weighted valuation was a researcher at Singapore’s third largest bank, UOB, who said that the currency’s recent decline had “run ahead of itself” and that higher prices should be expected over the coming days.

AUD to GBP - 1 Week chart - Latest
AUD/GBP - 1 Week Chart - Latest

Over the longer term, too, Australia’s currency appears to be ripe for appreciation.

In the view of Goldman Sachs, recent dovish comments from RBA Deputy Governor Guy Debelle “should be taken in the context of a speech dedicated to the policy response to the 2008 financial crisis rather than a signal on future policy direction,” and furthermore, much of the weakness seen in recent economic data “should prove temporary.”

“With a partial cut [to Australian interest rates] now priced into the curve . . . the risk-reward is favorable for AUD higher on a stabilization of both China data and the Chinese yuan,” GS argues.

GS expects to see AUD/USD at $0.75 in 3 months’ time.


Further Reading


US Dollar Plunges After Fed Signals No Rate Hikes This Year

The US dollar crumbled on Wednesday after the Federal Reserve signaled it would keep interest rates unchanged throughout 2019, thereby backtracking on the two rate hikes it predicted in December.

Updated: 20 Mar, 2019

TransferWise Borderless Account – BER Review

TransferWise’s Borderless Account allows users to hold and convert funds in 40 different currencies, and send and spend internationally, all at the “real” exchange rate and with the low fees that TransferWise is renowned for. Users can also receive major-currency payments free of charge.

Updated: 20 Mar, 2019

CBOE Ditches Bitcoin Futures Amid Reduced Interest

Amid declining interest, the Chicago Board Options Exchange, or CBOE, has announced it will no longer offer bitcoin futures contracts once current contracts expire in June.

Updated: 19 Mar, 2019

Canadian Dollar to Lose a Further 5 Percent, Will Soon Buy Only US$0.71 (TD Securities)

Prospects for the Canadian dollar have turned “considerably to the downside” and the currency is likely to lose 5 percent of its value this year, TD Securities has said.

Updated: 19 Mar, 2019

Australian Dollar Still Struggling; AUD/GBP at Lowest Since 2016

A slight advance in AUD/USD this week to $0.705 is hardly cause for celebration; however, the stability this represents following 3 weeks of losses would normally signify reduced currency pessimism—in this case, it doesn’t even do that.

Updated: 19 Mar, 2019


Tags: Currency-News , , , ,

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

Get a Better FX Deal when you Send and Spend Abroad.


Do NOT follow this link or you will be banned from the site!