Australian Dollar Strength After Inflation Data (Tom Holian)

GBPAUD exchange rates have seen a fall overnight following the release of inflation data in Australia.

Inflation fell for the first time in over 2 years with the figure measuring 1.7% for the year.

This is down from the previous reading of 2.3% at the end of the September quarter. This means that there is a small amount of potential to cut interest rates but as inflation is still relatively high the change in policy at next week’s meeting now seems unlikely.

The recent jawboning by the RBA and other senior bankers appears to have taken effect with the exchange rates which have recently been trading either side of 1.90.

Tonight the US Federal Reserve meets to discuss their own interest rates. The chances of them changing policy is practically zero but the rhetoric used shortly afterwards will provide some insight into the future.

Often what happens in the US will affect the Australian Dollar exchange rate.

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. Tom Holian teh@currencies.co.uk

 

 

 

GBPAUD spikes higher again on 1.90!

GBPAUD was always set to rise this year as the UK look set to raise interest rates and the Australian economy slows down. The extent to which this has manifested in recent weeks can be seen as rates rise at almost 1.92 on the interbank rate as I write.

All in all it is a very good time for AUD buyers, you should not worry too much for rates to climb much higher with GBP weakness expected due to the General Election. If you need to buy or sell the Aussie making plans is always sensible with such a volatile currency! Please contact me Jonathan on jmw@currencies.co.uk to learn more.

GBPAUD rates rally

The Australian dollar has continues to strengthen this week as the demand for riskier currencies fall. This has resulted in an excesses of AUD weakening the demand for the currency and therefore its price.  This is something that I expect to scontinue to see in the near future with yet further falls in its value expected overnight.  Earliy tomorrow we have data released from the Reserve Bank of Australia which is expected to show a fall in Consumer Price Index.  This is all great news for anyone with AUD to buy as I expect tomorrow morning to give buyers the best opportunity seen in nearly 5 years.  Sellers as a result are getting wary and to be honest I would be concerned if I had AUD to sell.  Today’s fall may be the time to move as a result following the confirmation of the UK GDP figures which missed expectation.

If you would like more information on the market movement and how to minimise your risk feel free to get in contact with myself for a personal response. Contact me via email at hse@currencies.co.uk

Sterling up against the Australian Dollar (Tom Holian)

In what has been one of the most volatile weeks in recent times for the Australian Dollar exchange rate we have seen the AUD weaken against the Pound towards the end of the week.

The currency pair has been affected by the ECB action taken on Thursday which initially helped to strengthen the AUD however a little later we saw a flight to safety by global investors who have ploughed into the US Dollar.

These same investors have sold the Aussie if favour of the USD which has led to the GBPAUD exchange rate going in an upwards direction.

Iron ore prices also saw a fall this week and as this is one of Australia’s largest commodities this also saw the currency weaken.

Indeed, in the Australian iron ore industry companies reported more than $3 billion in asset writedowns this week.

With the RBA set to meet on February 3rd if there is a rate cut we could see Sterling rise against the AUD but an absence could see a short term strengthening for the Aussie Dollar.

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

 

 

 

Australian Dollar Strength as ECB confirms QE (Tom Holian)

In what has been an interesting last few days in the global currency markets the European Central Bank has finally confirmed their level of QE.

The amount has been put in place of EUR60bn per month until September 2016 with the option to continue if the markets need it.

The good news for the Australian Dollar exchange rate is that this encouraged investors to seek riskier currencies again which helped to strengthen the Aussie vs Sterling.

The next risk for global politics will be the Greek elections due to take place on Sunday 25th. The Syriza party is very anti-IMF and anti-EU bailout so if they gain power they are likely yo challenge the current bailout package which is not good news for the Eurozone.

The uncertainty surrounding the election could cause a sell off from the Australian Dollar.

Tomorrow the UK releases Retail Sales and if the Christmas period was positive we could see early Sterling gains in the morning vs the AUD.

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

 

 

 

European Central Bank news strengthens the AUD.

Today’s news has all been European with news from the European Central bank. They have confirmed the assumptions made and the leaked news earlier today and started their QE program. They have signed off on billions of euros being spent and significantly increases the money flow of cheap money into the system.  This increases the risk appetite of traders and people have been buying risky currencies, so the AUD, CAD, NZD and ZAR have seen demand increase making their respective currencies more valuable.  The AUD has gained against the pound by over 2 cents this last 24 hours.  A massive opportunity for anyone buying the AUD, sellers however are disappointed.

 

Tomorrow we have UK retail figures due on the morning which are expected to show a weakening of the retail market which could give AUD sellers some relief.

 

For more information feel free to contact me via email at hse@currencies.co.uk

Australian Dollar Weakness (Tom Holian)

Sterling vs the Australian Dollar took a huge leap during the course of late trading today as rumours came out from Europe that the European Central Bank may print up to EUR1.1 trillion in an attempt to combat falling inflation.

The bad news for the Australian Dollar means that investors are being less risky and selling off their positions in riskier currencies which includes the AUD, NZD & ZAR.

Indeed, we saw a 2 cent movement for the Pound vs AUD during this afternoon.

The official release will by the ECB will be at 1245pm tomorrow UK time so expect volatility in both the run up to the decision as well as afterwards.

Canada also cut their interest rates today which again led to rumours that the Reserve Bank of Australia might follow suit when they next meet on 3rd February.

If the RBA does cut rates or hints that a rate cut is coming expect to see Australian Dollar weakness.

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

 

 

 

Where Next for GBP/AUD Exchange Rates? (Matthew Vassallo)

GBP/AUD exchange rates have dipped during Wednesday morning’s trading, with the pair now floating around 1.84. A recent slowdown in China’s economic growth was of concern for the Australian economy, as China are their largest trade partners. The Australian economy is heavily reliant on its export industry so if this slows, the economy will suffer as a result.

However, today’s move has seen the AUD gain value against GBP. The reasoning for this could be attributed to Consumer Confidence figures released overnight in Australia, which came in better than previous. We also to consider this morning Bank of England (BoE) minutes which indicated that there is now a 9-0 vote against a hike in UK interest rates and this is likely to have dampened investor expectation and caused the Pound to drop.

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 currency provider, then please feel free to contact me directly on mtv@currencies.co.uk

GBPAUD Rates rise on poor Chinese GDP Figures (Tom Holian)

GBPAUD exchange rates have risen during the course of the day as Chinese GDP data shows its weakest level in 2 years at 7.4%.

The annual growth target was for 7.5% so although not too far from expectation the news was still negative. However, this is also the first time the target level has not been hit in 15 years.

The issue this has for the Australian Dollar exchange rate is that is is often heavily influenced by what happens in China as they are Australia’s leading trade partner.

Two months ago we saw an interest rate cut by the Chinese in order to stimulate the economy and I think the rate cut will see take a while before we see the impact for the economy.

The Westpac consumer confidence survey is due shortly and if we see a negative reading we could se Australian Dollar weakness overnight.

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

 

 

 

Good selling AUD opportunity Wednesday 21st January

I believe tomorrow will be a very good opportunity to sell the AUD for the pound since there is the Bank of England meeting Minutes which I think could cause some market movement. Principally this will be because there is an expectation that the UK were to raise interest rates in 2014. With that expectation now being pushed back into 2016, I think sterling will suffer further and would therefore recommend that anyone who needs to sell AUD trade on the spikes in their favour.

Longer term I would expect the Aussie to come under some serious selling pressures as the RBA have stated on numerous occasions they feel the AUD is overvalued.  If you need to make any currency transfers in the future please contact us as we can save you money! Not just by offering a better price than your current provider but also by pointing out spikes in your favour.

For more information please contact me Jonathan on jmw@currencies.co.uk