Best Exchange Rates

Home pages - full list (A-Z)


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.

Currency-News AUD GBP
Email share     Facebook     LinkedIn    Twitter

The gains made this week by the benchmark Australian dollar rate, AUD/USD, fail to give a true impression of the currency’s performance which, as in the bulk of the past 3 weeks, has been below par.

At 4pm in London on Thursday, against six of the other nine G10 currencies, the Australian dollar was quoted lower than its level a week ago; against one of the G10, it was unchanged; against only two currencies, including the US dollar, it was higher.

A couple of economic data releases have assisted the Aussie on its way down. First, National Australia Bank’s widely followed measure of Australian business confidence, released on Tuesday, fell to its lowest level since 2015, and then, the Westpac-Melbourne Institute’s index of consumer sentiment dropped into “pessimism” territory for the first time since 2017.

Westpac itself was the cause of heavy Australian dollar selling on February 20th when it slashed Australian growth forecasts and, more importantly, predicted 50 basis points worth of interest rate cuts by the RBA this year, way more than priced in at the time.

Westpac now agrees with JP Morgan and HSBC that the Australian dollar will end the year worth less than it is now. The first two banks foresee US$0.68 at year-end but the latter is more downbeat; it argues for US$0.66.

AUD to GBP - 1 Week chart to 14 Mar
AUD/GBP - 1 Week chart to 14 Mar

One notable exchange rate, AUD/NZD, has at least thoroughly rejected a move below what Nordea analysts described on Monday as the “make or break” level of NZ$1.033, signalling higher prices in the short term. The rate was back trading at NZ$1.035 on Thursday, having risen steadily since Wednesday’s failed attempt on NZ$1.3.

Another Aussie exchange rate worth mentioning is AUD/GBP, which has struck its lowest level since June 2016, at £0.53. Of late, the Australian dollar has been unable to compete with the pound, not with the latter benefiting every time the British government fails to make a decision on how to deliver Brexit, which is a near-daily occurrence.


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

Pound Falls From 21-Month High After Doubts Cast on May’s “Legally Binding” Assurances

GBP British Pound Sterling Exchange Rate Forecast Brexit

The pound fell rapidly away from long-term highs on Tuesday morning after Britain’s Attorney General said that the “legally binding” assurances secured on Monday night by Theresa May merely “reduced the risk” of the UK being trapped in a permanent backstop.

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!