US GDP Helps to Strengthen the Australian Dollar (Tom Holian)

GBPAUD exchange rates have fallen during today’s trading session following some very positive news from the world’s leading economy. With US growth surpassing the expectations of 3% to 3.5% this has led investors to choose riskier currencies again including the AUD, NZD & ZAR.

The good news is that the US has of last night ended their Quantitative Easing which has also led to a strengthening of the Australian Dollar.

The weakening over the last few months for the Australian Dollar has helped to increase revenues down under which has helped the Australian economy to grow. A lower exchange rates has helped to make Aussie exports cheaper and means that goods and services are more competitive.

One issue longer term for the strength of the Australian Dollar exchange rate is what will happen with Chinese growth which may slow during 2015. This could weaken the AUD against Sterling in the longer term.

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

 

 

 

Will the pound continue to rise against the Aussie?

Attitude towards the Aussie focuses on views that it is a risky currency. Essentially a positive view on the global economy from the Fed should also help the Aussie, any signs of uncertainty my cause AUD weakness… What we saw was the US act in line with expectations.

Breaking News will focus on further signs of the Australian economy suffering, for me the expectation longer term the Aussie will weaken seems the most probable. For more information at no cost or obligation on what may move your rate please contact us as per the form or email me Jonathan directly on jmw@currencies.co.uk. Why not ask us about a forward contract which would limit your risk and provide some certainty as to where rates are headed?

 

GBPAUD rates about to change

GBPAUD uncertainty remains in the build-up to the all-important FED meeting this evening. This is when the FED is expected to confirm a finish to their QE program which they started over 6 years ago.  What will be very interesting will be the commentary and therefore the impact on the forecast when they may start changing their interest rate. This will have a huge impact on the market I would expect if it changes significant from the current view.  Demand and therefore value of safe havens and export lead currencies will change including that of the Australian Dollar. We have already seen the dollar get more valuable in the build-up and this could be accelerated if confirmed within the next 6 hours.  If you are in the market buying or selling the AUD then today could be key for the next 6 months potentially.

Recently the head of the FED has suggested that interest rate hikes will not climb as quickly as they had previously thought, putting this down to the USD strength and global economic health. I personally think that this fluffy answer will be given again this evening but any change could have a 2 cent impact on the value of the AUD within a few minutes.  Are you willing to take that risk, are you willing to wake up with an additional bill on your currency transfer? Many are not and are therefore utilising the tools here to safeguard their position; this includes Limit orders, Stop loss orders, rate alerts and spike notifications.

For more information on any of the above or to talk through your situation with a personal broker please get in contact. You can deal directly with myself if you would like; email me at hse@currencies.co.uk and I am available to speak up until 18:00 GMT.

Look forward to being of assistance.

GBP/AUD Dips During Wednesday’s Trading (Matthew Vassallo)

GBP/AUD rates have dipped during Wednesday morning’s trading, as the markets ready themselves for the US FED interest rate decision and monetary policy statements this evening. It is widely anticipated that the FED will put an end to their Quantitative Easing (QE) programme, a decision which is likely to have huge knock on effects for the global market.

It is likely the markets are currently factoring this decision in to any rate movements, so if this decision is not made as predicted expect further volatility for GBP over the coming days. The reason the AUD is strengthening is that any decision by the FED to end their QE programme will be seen as a positive for the US economy. This in turn is likely to give investors more risk appetite and they will start buying some of the more riskier currencies, including the AUD.

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

GBPAUD data before the end of the week

Aussie data still to come focuses on Import and Export data plus some loose Inflationary data. Overall I expect the Aussie to remain reasonably well supported since the higher interest rate down under makes it an attractive currency to hold. The abundance of raw materials too keeps the Aussie supported as well. Perhaps most important this week is tomorrow night’s Federal Reserve Interest decision where we will learn of new news on the withdrawal of QE and also any planned interest rate hikes. This may affect the attitude towards the Aussie as a risky currency. Essentially a positive view on the global economy from the Fed should hepl the Aussie, any signs of uncertainty my cause AUD weakness…

For more information at no cost or obligation on what may move your rate please contact us as per the form or email me Jonathan directly on jmw@currencies.co.uk

GBPAUD calm but watch out for FED decision on Wednesday

GBPAUD rates are staying steady this week, with little movement expected until at least Wednesday afternoon. As we enter the end of the month economic data, which is traditionally one of the main drivers for movement in the currency market, is rather thin and far between. On Wednesdays we see the latest FED decision in the US which will have an impact on the risk appetite of traders and therefore demand for the AUD.  In this meeting they are widely expected to conclude their QE tapering program and potentially open the door to start the interest rate race.  This is the topic which I expect to case the biggest change in market movement, when a central bank will change interest rates.  Australia has entered a period of stability and the governor has suggested no change is expected in the near future. The UK has in turn continually pushed back their forecasts on change for about now to maybe 12 month further in the future. The US has also changed their views originally suggesting that they could start to raise rates 6 months after they finish their QE tapering, really meaning that Wednesday meeting could make a significant difference.

After Wednesday we start the next monthly cycle of economic data with a host of data form the UK, Australia, China and the US.  Keep an eye out for reactions on the market after GDP figures in the US are released on Thursday. This will also be interesting as this is expected to show a contraction.

If you would like more information on what to potentially expect from the markets and how these could impact your currency transfers please feel free to get in contact my emailing myself directly. My name is Steve Eakins and my direct email address is hse@currencie.co.uk

UK Economic Growth and Impact on Australian Dollar (Tom Holian)

Sterling fell during Friday’s trading session following the announcement of UK growth on Friday morning. The official figures showed a growth rate of 3% which was down from the annualised rate the quarter before which showed 3.2%.

The news is not actually that bad it was just a bit lower so I think the markets will not dwell on the news.

The big event of this week coming up will be the Federal Reserve’s Interest rate decision to be held on Wednesday night. The Fed are likely to end their current monetary easing from USD15bn to zero which could lead to a sell off from the Aussie Dollar which could see the Australian Dollar exchange rate weaken.

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

 

 

 

GBPAUD rates remain a good buy opportunity

The rates for buying Australian dollars above 1.80 represent I feel a great opportunity on the markets, once I think that everything should take seriously. with sterling coming under a lot of pressure this month, any further improvement in the Australian economic outlook could see us head back below 1.80. I do feel that sentiments towards the Aussie will improve despite fears and expectations we will see the Aussie weaken dramatically.

Investors will still want to get a good return on their money and with some riskier assets invoking fear, the Aussie is a safer riskier asset. If you need to move any funds into AUD with sterling or sell AUD and buy GBP tomorrow’s UK Gross Domestic Product data is the key piece of information. I expect sterling could come slightly unstuck so buyers of Aussies may wish to move before the release comes out. For more information at no cost or obligation please contact me Jonathan on jmw@currencies.co.uk

Australian Dollar Strengthens against Sterling (Tom Holian)

GBPAUD exchange rates have dropped this morning from 1.83 to 1.82 following the release of UK Retail Sales which saw a fall of 0.3% month on month.

This was the weakest level seen since January after mild weather in teh UK had a negative effect on new clothing purchases.

Over the last 12 months the level is 2.7% but the expectation was for a gain of 2.8% so Sterling has weakened during this morning’s session.

Recently the UK’s biggest supermarket Tesco announced a big fall in profits which has highlighted the slow down.

Tomorrow sees the release of UK GDP at 930am and with expectations of 3% I think the figure could be lower than expected and therefore see Sterling fall against the Australian Dollar offering very good selling opportunities if you need to sell AUD into GBP.

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

 

 

 

GBPAUD levels wobble before UK focus this week

Sterling’s value is holding steady against the Australian Dollar following a slight uplift overnight. This was seen as China data put the spotlight on their growth levels and therefore their demand for the Australian resources..  It is normally this time in the month that we see markets move on rumours as economic data is lacking to take full focus of the currency traders. This however will change now, eyes will be fixed on the UK with two of their largest reports published both tomorrow and Friday. This is UK Retail Figures and the latest GDP figures. Retail has an impact on, what is estimated to be, 60% of the UK economy as the recovery is really build on consumer spending. Unfortunately this is expected to show a fall as the warm winter stops the normal run to the shops for winter wear, as a result sterling’s value is expected to fall in early trading tomorrow. This trend is expected to continue on Friday with GDP figures also forecasted to show a drop, all pointing towards a weakening UK economy which will shortly be priced into the value of the Pound.

So if you are looking at buying any currency with Sterling this week or arguably through October I would personally move before these releases and trade ASAP this afternoon.  On the other-hand if you are buying the Pound this is good news and I would be posed to move very quickly over the next 48 hours to get the best prices. If you would like more of a breakdown of the times these are expected, what the market will do in the run up and therefore how to time your trade feel free to break radio silence and get in contact. Along with that we offer award winning exchange rates helping people save money on their currency transfers for over 15 years. Simply put, if we could not help you save money, we would not be in business!  Contact myself Steve Eakins via email at hse@currencies.co.uk