Will the RBA cut interest rates this week? (Tom Holian)

The Reserve Bank of Australia are due to meet on Tuesday and with the GBPAUD rate on an upwards spiral any mention of a rate cut could see rates go even higher.

With Chinese data dwindling and the Australian economy having its own problems with growth a rate cut could be quite a good thing for the economy.

However, I don’t expect to see a rate cut just yet but some tactical jaw-boning could be used to weaken the Aussie Dollar vs Pound Sterling.

Australian retail sales are also due just before the RBA’s decision but I think the currency markets will be waiting for the RBA announcement and overlook this piece of data.

Australian unemployment data is due on Thursday and signs of negative data is likely to weaken the AUD vs Sterling especially if the RBA do mention any sign of a rate cut.

If you have 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

 

 

 

GBP/AUD Forecast (Matthew Vassallo)

GBP/AUD exchange rates have dipped slightly during Friday’s trading but the pair is still sitting very close to a 6 year high. Sterling’s momentum over the past couple of months has come in line with an upturn in UK economic data and I do not see a major shift in market conditions in the short-term.

The Australian economy seems to have caught the back end of the global crisis, when for a time it seemed almost immune. A major catalyst for the start of its decline was a gradual fall in the export of its vast supply of raw materials and as regular readers will know this is a key component of Australia’s economy. Without this the extremely high labour costs of their mining sector, along with other facets of the economy start to become a burden and we’ve seen over recent months how quickly the AUD can lose value.

Personally I feel that regardless of short-term spikes in the market the Pound will continue to find support above 2 on the exchange but whether we see another major spike for Sterling will depend on the Bank of England’s stance and whether we hear further talk of an interest rate hike.

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

Interest Rate Decision could cause further AUD woes (Daniel Johnson)

Australia are heavily dependent on China, so much so if China catches a cold so does Australia. China’s Stock sell off coupled with poor growth data does not bode well for Aussie. There is the possibility of a rate drop on Tuesday which could give AUD buyers an opportunity to buy at a new six yr high.

I will have several large GBP/AUD deals going through on Tuesday which potentially I can tag other clients on to and achieve a very competitive rate.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.

Sterling – Australian Dollar exchange rates – Interest rate decisions due next week (Daniel Wright)

I had been predicting for quite some time in my emails that the Pound would breach 2 against the Australian Dollar it has now done so with a vengeance. Rates are currently at multi year highs and this is a great time to be sending money over to Australia.

With the U.K economy doing well, Governor of the RBA Glenn Stevens seemingly happy to see a weaker AUD and The major issues surrounding China it did always look like this spike would be coming.

We currently are sat at a level of resistance below 2.15 so the key now will be whether or not the rate can push through that in the next week or so. Personally I feel if it does not manage to push through the 2.15 in the coming days it may easily start to drop back below the 2.10 marker as we see a run of profit trading and traders selling off positions after such a good run.

There isn’t a huge amount left to come out this week in terms of economic data but next week will see the interest rate decisions for both Australia and the U.K so it will be key to make sure you have a proactive and efficient currency broker on your side if you have an upcoming currency exchange to carry out involving the Australian Dollar. I will be more than happy mto help you if you are in this position both in terms of getting you an exceptional rate of exchange but also explaining the various options you have available. These include a forward contract, stop loss and limit order.

Feel free to email me (Daniel Wright) on djw@currencies.co.uk with a brief description of your requirements and I will be more than happy to assist you personally.

GBPAUD Exchange rates and impact of Chinese Outlook (Tom Holian)

Sterling vs Australian Dollar exchange rates have improved over the last couple of trading sessions as UK GDP figures showed positive growth.

The Chinese stock market has fallen dramatically in recent times and as Australia’s largest trading partner any problems in China have an adverse effect on the strength of the Australian Dollar.

With more losses expected on the Chinese stock market this is likely to continue to impact the Australian Dollar possibly creating further weakness.

The Federal Reserve in the US have suggested that they are ready to start increasing interest rates soon whilst the RBA are more likely to cut interest rates going forward.

This combination of monetary policy does not bode well for the Aussie Dollar so we could see GBPAUD rates go in an upward direction over the next few days.

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

 

 

Recent Volatility on GBP/AUD Rates Continues (Matthew Vassallo)

The recent volatility on GBP/AUD rates looks set to continue, with the AUD finding further support during Tuesday’s trading. With GBP/AUD rates moving back towards 2.12 earlier today the recent volatility on the pair looks set to continue. Many clients are now questioning where the pair will head next and regular readers will be aware that due to the additional volatility seen on GBP/AUD rates compare for example to GBP/USD rates, it makes forecasting, particularly long-term, very difficult indeed.

However, that doesn’t mean that we cannot identity and execute trades at better levels than seen today, whether you are buying or selling AUD. Whilst the general trend of late has been AUD weakness there have been opportunities in the form of short sharp burst, which if monitors and actioned upon, could provide AUD sellers with a short term ‘window of opportunity’.

The general consensus regarding forecasts on GBP/AUD indicate that the AUD may struggle to make any sustained inroads in the short-term, certainly whilst there is a continued slow-down in the Chinese economy. China are Australia’s largest export partners and any slowdown in this sector is a major concern for Australia, who are heavily reliant of the export of their vast supply of raw materials.

Whilst I do expect improvements in China over the coming months I would be surprised to see GBP/AUD rates head back below 2 anytime soon but it does seem as though the AUD has finally found some support around the current levels.

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@currnecies.co.uk

GBPAUD rates soar!

The pound has risen against a number of currencies this morning including the Australian dollar and the levels are now well over 2.13. Just what can we expect in the future from this currency pairing? Well with the RBA (Reserve Bank of Australia) likely to cut their base interest rate again in the future it seems reasonable to expect that this price will keep going higher particularly as the Bank of England are potentially going to raise their own interest rate following the impressive economic data.

All in all we are returning to more historical levels on the currency pair which I cannot see being sharply reversed any time soon. I think that if you need to sell Australian dollars for the pound moving sooner is the best course of action to avoid further losses.

For more information on what will move your rate and what to expect please contact me Jonathan on jmw@currencies.co.uk

Sterling gains vs the Aussie Dollar (Tom Holian)

Sterling vs Australian Dollar exchange rates ended the week on a high pushing to upwards of 2.13 on the mid-market level giving opportunities to buy Australian Dollars at their highest level since 2009.

With oil prices and iron ore prices both falling over the last few weeks as the global slowdown continues this has weighed heavily on the strength of the Australian Dollar against a basket of currencies including the Pound.

The Chinese stock market has seemingly gone into free fall over the last few months and to combat further falls investors with more than 5% holdings are unable to sell more than this figure within a 6 month period.

As China is Australia’s largest trading partner as they slowdown this often tends to weaken the Australian Dollar.

With GDP in Australia also coming out lower then expected recently this has really caused the Australian Dollar to weaken vs Sterling.

On Tuesday the UK releases 2nd quarter GDP figures so if this show signs of a fall this could provide the Australian Dollar with a small bout of strength creating a short term opportunity to sell Australian Dollars into Sterling.

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

 

 

 

GBP/AUD Rates Rise Again (Matthew Vassallo)

GBP/AUD rate shave spiked up during Friday’s trading, with the Pound gaining almost 3 cents at today’s high. The recent volatility on the pair looks set to continue after the AUD made strides yesterday, only to see these gains quickly eliminated as we head into the weekend.

The Pound was hit yesterday following some very poor UK Retail Sales figures, which dragged Sterling’s value down throughout yesterday’s trading and it did seem as though the AUD had found some much needed respite. However, as today’s developments prove nothing is certain in the currency markets but what is of even more concern is that the AUD has lost support so quickly despite the downturn in UK data mentioned.

The markets confidence in the Australian economy is at an extreme low at present, with major concerns over economic growth in China, their largest trade partners. With Bank of England (BoE) governor Mark Carney also talking up the chance of a UK interest rate hike happening sooner than many will expect, has also helped to solidify Sterling’s 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@currnecies.co.uk

Sterling weakens on Poor Retail figures (Daniel Johnson)

UK Retail figures were released today and they came in lower than expected. They were predicted to come in at the optimistic level of 5%, however when the figures were confirmed they came in at 4.2%, a considerable short fall.  The RBA have mentioned the possibility of rate cut in order to keep the Chinese happy as  Australia are heavily dependent on the export of raw materials to their Asian counterparts.

I think this is simply jawboning from the RBA and a rate hike is no solution to the AUD’s problems. China’s growth is slowing down considerably and figures could be worse than thought due to distorted reports on lending from “shadow banking”.

GBP/AUD currently sits at 2.10, very close to a six year high. I would be very tempted to trade if I had an AUD requirement. We do have several large GBP/AUD trade going through in the next few days and potentially we can tag new clients on to these deals to achieve a very competitive rate. Please do get in touch if I can be of assistance.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.