GBPAUD Rate over 1.80 again (Tom Holian)

The Chinese interest rate cut which took place on early Friday morning helped to strengthen the Australian Dollar but the comments from ECB President Mario Draghi meant that the AUD strength against the Pound didn’t last too long.

Mario Draghi has opened the door to further intervention in monetary policy in an attempt to combat falling inflation and low growth in Europe.  This led global investors to selling the Euro and ploughing money into the Pound which saw GBPAUD exchange rates hit above 1.80 again.

In what has been a rather turbulent 2 weeks for GBPAUD exchange rates I think we will see further gains for Sterling vs the Australian Dollar as we go into the early part of the week.

UK GDP is published in Wednesday and if the data is better than the 3% expected we could see further Sterling gains.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Chinese Interest Rate Cut Strengthens the Australian Dollar (Tom Holian)

Sterling vs Australian Dollar has fallen dramatically this morning following the announcement that China cut interest rates today. With Chinese growth now slowing to its lowest rate in almost 25 years the central bank has acted to stimulate the economy.

With factory growth stalling as well as the property market in China the rate cut was an aim to keep the Chinese spending. This is good news for the Australian economy as the more the Chinese spend the more demand there is for Australian natural resources.

Therefore, we have seen the Australian Dollar strengthen by over 1% against Sterling which has created some excellent opportunities in the short term for anyone looking to sell Australian Dollars.

This could however be a short term movement for GBPAUD exchange rates as it does go to show there are big problems in the world’s second largest economy.

If you have a currency transfer to make and want to save money on exchange rates then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

Expect the unexpected!

Today we saw some unexpected swings on the currency markets and the Aussie dollar as the Chinese central bank cur their base rate and Mario Draghi of the ECB (European Central Bank) forecast an extension of their QE (Quantitative Easing) programme. Much of the strengthening of the Aussie today was on the back of this news.

this just shows how unpredictable the market can be and how important it is to keep up to date with the latest news. For more information on our services please contact me Jonathan on jmw@currencies.co.uk

GBP/AUD Forecast (Matthew Vassallo)

GBP/AUD rates continue to trade above 1.80 on the exchange, providing good buying opportunities for those holding GBP. It’s been a volatile few days for the Pound with losses against the AUD last week, following the latest UK quarterly inflation report. It now seems as though UK interest rates are unlikely to be raised until the last quarter of next year, news which knocked investor confidence in the Pound.

This morning we had the latest set of UK Retail Sales figures and with an improvement from 0.3% to 0.8% the Pound found support after a difficult few days, with GBP/AUD moving back above 1.82.

It will be interesting to note how any improvements in China’s economy will effect the AUD, as generally growth in China’s economy is considered a positive for the Australian economy due to their trade links and can often help strengthen the AUD’s market position.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

Good Time to BUY Australian Dollars?? Andrew Bromley

Sterling has had a slight revival against the Australian Dollar, taking advantage of a moment of weakness for commodity currencies worldwide. Investors tend to flock in and out of popular locations as to where to hold their funds, currently taking Oil Gold and Iron Ore to record low levels. Weak commodities indicate a poor attitude to risk and as USD is currently incredibly strong, AUD is out of favour.

With strong UK retail sales released this morning we may find that 1.80 on the market is not breached again until next week. With that in mind if I were buying AUD I’d look to take advantage of what may be short lived.

Feel free to drop me a line if you wish to discuss a transaction – 01494 787 478 – direct to the trading floor.

If email is better, AJB@currencies.co.uk

GBPAUD Exchange Rates back above 1.80 (Tom Holian)

GBPAUD exchange have seen a surge through 1.80 overnight following news from Australia that iron ore prices have seen their biggest fall in 6 months.

Fears have increased that the oversupply in China’s property market will lead to less demand for Australian natural resources and hence we have seen the decline for the Australian Dollar creating some good buying opportunities following the news last week.

Bank of England minutes have confirmed a vote of 7-2 to keep UK interest rates the same which has also given rise to Sterling support against the Australian Dollar and at the time of writing this has seen GBPAUD rates through 1.81.

UK Retail Sales are due out tomorrow morning and with expectations for 3.8% anything higher could see Sterling strength.

Often GBPAUD exchange rates are also affected by what happens in the US and the FOMC minutes are due out tonight which could create volatility.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

AUD still wildly overvalued

Once again we have had comments that the AUD is overvalued by the Australian central bank. This makes me think that the Australian currency is highly likely to weaken in the future, if I was selling the Australian dollar to buy the pound or indeed the Euro, I would not be wasting too much time. It looks likely the Australian dollar will weaken in the future which should be a major concern for anyone holding the aussie.

If you need to get some information on the Aussie why not get in touch with me on jmw@currencies.co.uk and find out the latest news and learn about your options to get the best exchange rates.

GBPAUD rates fall through the floor

The GBPAUD rate has been rather negative over the last few days with a fall of over 5 cents compared to the highs seen last week. This has been put down to both an improving picture of AUD, especially with China trades being signed off, and UK data poor. It is a trend which has I think stopped overnight and we should see a slight recovery over the next few days as traders take profits.  Keen a watchful eye on UK data on Thursday and US data on Friday for more movement but I do expect this afternoons market to be rather stable.

Personally I see 1.80 as an achievable target this week.

Longer term be wary for the political play taking place in the UK. The PM has been fairly negative recently and I expect this to continue as Labour start their campaign for the elections next May.  The next government budget is released in early December and with little policy change expected so close to Christmas the release will have everybody’s attention.  It is likely they will paint a poor picture and lean on the fact that everyone should stay with the plan as many see the economic argument to be their strongest.  This is a topic which will become increasingly important in the months ahead with the general election now only 6 months away.  It is widely expected to weaken the pound as uncertainty intensifies.

For a full break down on how we can help, the market forecasts or a live price please contact myself, Steve Eakins via email at hse@currencies.co.uk

GBPAUD Rates fall below 1.80 (Tom Holian)

Sterling has had a very strong period against the Australian Dollar tipping towards 1.86 in recent weeks but last week saw the biggest fall for GBPAUD rates in quite some time.

The trigger point came in the form of the Quarterly Inflation Report which saw Sterling fall by over 1% against the Australian Dollar and this has continued all last week.

Indeed, at the time of writing GBPAUD rates have tipped below 1.79.

The Chinese economy is often seen as the catalyst for movement of the Australian Dollar and typically when the Chinese data is negative this weakens the Australian Dollar.

However, the news from the end of last week showed that China’s economy is showing more signs of weakness. This in theory should have weakened the AUD against the Pound but owing to the negative comments from Mark Carney this data appears to have been overlooked.

Tuesday morning sees the release of UK inflation figures and as they have dominated headlines this month this could cause a large amount of volatility for the GBPAUD currency pair.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Australian Dollar – Best Rates of Exchange – Andrew Bromley

Australian Dollar has opened this morning in a very similar position to close of trading yesterday – testing the 1.80 barrier. This is primarily due to the weak Pound following Wednesdays Inflation statement.

Bank of England governor Mark Carney confirmed on Wednesday that UK interest rates would not be increased until late 2015. With Inflation down to near 1%, Carney has had the decision taken away as to when to recommend the rate hike – the UK General Election and months prior are no time to change the 0.5% rate. Sentiment on trading floors has gone from strong support for Sterling growth to a feeling that ‘Any positive news is to be short lived, as the Pound will just be talked back down again’.

On the Australian side of things, commodities have had a quiet week and have not impacted GBP AUD a huge amount. The Reserve Bank of Australia have also been quiet, with the next release of note (Reserve Bank of Australia Interest Rate meeting minutes) due out at half past midnight on Tuesday next week.

My opinion is that we have a selling window for the Australian Dollar – the market has nudged in to the 1.79s at time of typing. I think buyers should target buying at closer to the 1.85 if the rate presents itself within your set timescale.

Please do feel free to drop me a line if you do have an exchange requirement – 01494 787 478 or ajb@currencies.co.uk