June 2008 Australian Dollars Exchange rates

Pounds Australian Dollars Currency News archives

Tuesday 17th June 2008 Interbank rate:
GB POUNDS / AUSTRALIAN DOLLARS 2.0871

Weak Employment Data puts the brakes on the Aussie Dollar

Weakening employment data in Australia indicated that a slowdown and contraction of the Aussie economy is perhaps underway taking some steam out of the recent Aussie rally. Weak employment figures tend to suggest that Aussie interest rates will be left on hold rather than increasing later this year as expected. This reduces some of the expected yield advantage of the Aussie dollar and as such it has been one of the major underperformers of the day.

A global slump in stock markets has shaken global investors and decreased their appetite for riskier plays such as the carry trade which favour Aussie dollar strength. Allied to rumours in the market that Central banks around the world will intervene in currency markets to prop up the sickly US dollar and you suddenly find the Aussie 3 cents of its recent highs at AUD/USD 0.9343 and Sterling has gained substantially to GBP/AUD 2.0824.

Expect Aussie dollar weakness to persist until the end of the week and then strengthen up after the G7 meeting this weekend.
 

Thursday 12th June 2008 Interbank rate:
GB POUNDS / AUSTRALIAN DOLLARS 2.0811

Australian Dollar Tracking Sideways against US Dollar and GB Pound

The European Central Banks assertion that it may have to raise interest rates next month took the market by surprise and sent US Dollar lower and crude prices (prices in USD) skyrocketing towards $140. Low yielding currencies such as the USD are getting punished as investors have lost faith in the ability of the Fed to contain inflation and ensure price stability.

Although, financial systems are under strain throughout much of the Western world the booming Australian economy and domestic banking system has been able to overcome higher funding costs and other difficulties. AUD/USD is trading at 0.9610 and is now well placed to move higher. Sterling has made modest gains to reach GBP/AUD 2.05 but could soon reverse from here again
 

Friday 6th June 2008 Interbank rate:
GB POUNDS / AUSTRALIAN DOLLARS 2.0375

Australian dollar still holding at elevated levels

The yield advantage of the Australian dollar has kept the Aussie up near AUD/USD 0.96 and GBP/AUD 2.03 despite commodity prices beginning to fall off recent highs.

The debate over the future direction of the AUD will hinge on future decisions by the Reserve Bank of Australia. While several analysts have called a top to the interest rate hikes at the current level there are an increasing number who believe that the RBA will be forced to raise interest rates yet again as the Aussie economy continues to overheat and inflationary pressures bear down.

The RBA like all central banks would like to see global growth to slow enough to take some heat out of the inflationary pressures which would simultaneously allow them to ease high interest rates to curb the economic slowdown. No central bank wants to allow inflation to take hold but that is exactly what has happened on a global basis and the banks are largely hamstrung into keeping interest rates higher than they would like. Such pressures will keep the Aussie dollar strong for the foreseeable future.
 

Wednesday 4th June 2008 Interbank rate:
GB POUNDS / AUSTRALIAN DOLLARS 2.0415

Aussie dollar retreats from recent highs against USD and GBP

The Aussie dollar hit a ceiling against both the US Dollar and GB Pound last week as better than expected economic data from the US surprised the market and the USD rallied.

Analysts and RBA (Reserve Bank of Australia) watchers are quietly confident of at least one more rate hike to bring Aussie rates up to 7.5%. With further hikes on the cards the yield differential between the Aussie dollar and the majors (USD, EURO, JP Yen, GBP) becomes more appealing to international investors. We would expect US and UK economic figure to disappoint this week and as a result Sterling and the USD could slide further southwards and the Australian Dollar could realistically take a run at parity to the USD and 2 to 1 against the Pound.

Currently AUD/USD is trading at 0.9541 and GBP/AUD has retreated slightly back to 2.0535.

Monday 2nd June 2008 Interbank rate:
GB POUNDS / AUSTRALIAN DOLLARS 2.0644

The Aussie dollar stretches its legs and heads for 2 to 1 against the Pound and possible parity to the US Dollar

The Australian Dollar has consolidated its recent gains and pushed higher against the world’s major currencies after the Reserve Bank of Australia (RBA) left the door open to tighten policy settings (higher interest rates)

A further interest rate hike was discussed at length at its May 6th board meeting, with rates left unchanged at a 12 year high of 7.25%. According to JP Morgan economist Helen Kevans “At this stage we think the RBA is firmly on hold, but without any further signs of easing domestic demand there is a possibility that the rates will need to go higher later in the year”. Coupled with commodity prices heading into the stratosphere we have a perfect explosive cocktail that could push AUD to new levels.
 

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