Will the AUD Recover? (Matthew Vassallo)

The AUD has had another volatile trading week, as the economic problems in China continue to mount. The well documents crash in the Chinese stock market has triggered a state of global panic and due to the trade ties between Australia and China, this has shaken the Australian economy and ultimately dragged down the value of the AUD.

This has caused the AUD to dip against all the major currency pairs but in particular against Sterling, with the pair reaching 2.21 on the exchange earlier this week. These were some of the best buying opportunities clients who were holding GBP had seen in the past 8 years, although the opportunity was short live with the AUD finding some support over the past 12 hours.

The reason for this improvement can be attributed to the strong construction data released overnight, which came in far better than anticipated. This helped to push the AUD’s value up, with GBP/AUD rates moving back below 2.16 at today’s low. Personally I see this as a short-term opportunity which has presented itself and if feasible, should be taken advantage of. I just cannot see any sustained improvement under current market conditions and with the economic problems in China likely to continue over the coming months, we could find the AUD continues to come under pressure during that period.

It’s been a quiet week for data releases, so all eyes will switch to next week’s Reserve Bank of Australia (RBA) interest rate decision. RBA governor Glenn Stevens will be pleased to see the recent devaluation of the AUD as it will help to facilitate an improvement in exports but may be concerned with the situation in China. He has already stated that the RBA will cut interest rates again if necessary, so it will be interesting to see what stance the central bank take next week.

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

Sterling vs Australian Dollar goes up again (Tom Holian)

Sterling Australian Dollar exchange rates have once again touched 2.20 this morning followed by the volatile start to the week with Black Monday.

With the US now unlikely to raise interest rates and the Chinese slowdown beginning to take full effect this is causing the Australian Dollar to weaken.

Indeed, this puts pressure on the Reserve Bank of Australia to cut interest rates in the near future as commodity prices have also fallen to a 16 year low this week.

The next possible interest rate cut in Australia is pencilled in for perhaps December and this has also caused weakness for the Australian Dollar.

With global market volatility this does not look good for the AUD rates vs Sterling and this could provide some excellent opportunities to buy Australian Dollars with 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

 

 

 

Sterling Australian Dollar tentative over Chinese Interest Rate Cut (Tom Holian)

Sterling Australian Dollar exchange rates have hit 6 year highs this week following the Chinese intervention with the Yuan and global commodity prices falling to their lowest level in 16 years.

As Australia is a commodity affected currency this saw the AUD weaken vs Sterling and the news from China saw a big sell off for riskier based currencies including the AUD, NZD & ZAR.

Today the Chinese cut its main interest rate by 0.25% to 4.6% in an attempt to calm down global stock indices which have been falling over the last few days.

This has helped to strengthen the AUD against the Pound but this could be just a short term answer for a longer term problem.

The decision to cut rates in China should have happened a while ago and the Yuan intervention was an attempt to sort out the economy but clearly this did little to help and they ended up cutting rates earlier today.

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

 

 

Sterling hits 6 year high vs the Australian Dollar (Tom Holian)

Today we have seen Sterling Australian Dollar exchange rates hit their highest levels for 6 years as negative Chinese data wreaks havoc for global stock indices.

As Australia is heavily reliant on what happens in China the data caused huge weakening for the Aussie Dollar creating some excellent buying opportunities if you need to transfer money to Australia. 

The stock market in China fell by over 8% its biggest daily fall since 2007 as investors sold off riskier currencies including the AUD, NZD & ZAR.

Commodities have fallen to a 16 year low and as much as US$5 trillion has been wiped off global stock indices over the last few days since the Yuan was devalued.

With currency markets almost impossible to predict at the moment 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

 

 

 

Chinese economic data causing global distortion (Joshua Privett)

Worsening news and data coming out of China has sparked a mass sell off of shares on the global stock-markets at the start of trading this morning. Last week the AUD lost significant value for this reason, alongside other commodity based currencies.

The mass sell off of shares has also hurt financial centres such as London, so luckily those looking to sell AUD for Sterling have only lost a Cent or so, much less than the overall devaluation of the Australian Dollar, now that global growth forecasts have been revised downwards for a longer period than previously expected.

Those with AUD to buy have just seen fresh 7 year highs to purchase on the markets, and I would be inclined to take advantage of this movement, as GBP/AUD has already corrected this morning from 2.17 to 2.15 in the space of 30 minutes.

Call me on 01494 787 478 and ask for Joshua for a free quote on your transfer. Alternatively email me on jjp@currencies.co.uk for tailored advise on your situation, particularly if you have Dollars to sell in the next few months.

Sterling AUD Rates rise owing to Chinese Data (Tom Holian)

Sterling vs the Australian Dollar exchange rates have had a lift during the week owing to the Chinese devaluing the Yuan as well as publishing factory output data.

Chinese factory data showed its lowest level since June 2009 and with the Chinese stock market having dropped by 33% since the start of the year things are not looking good in the world’s second largest economy.

As China is Australia’s biggest trading partner any negative data often results in Australian Dollar weakness and this is what has happened to GBPAUD rates during the course of the week.

With RBA governor Glenn Stevens due to speak publicly on Wednesday morning any jawboning or talks of another rate cut could see GBPAUD rates rise even further.

With the Australian economy under real pressure during 2015 I would not be surprised to see either a rate cut or talks of one prior to the end of this year.

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

 

 

 

When should I buy AUD? (Daniel Johnson)

Despite Sterling taking a knock against most major currencies this morning. GBP/AUD is still remaining around the 2.13-14 mark. This is more to do with AUD weakness than Sterling strength. Chinese factory orders came in during the night and were well below par, China’s growth is slowing considerably and due to Australia’s heavy reliance on raw material exports to its Asian neighbors AUD is taking a hit.

There are rumours of  a rate drop by the RBA but I don’t feel this is solution to Australia’s economic problems. If it is to happen I would expect it much further down the road. If you had an AUD requirement I would be looking to move when GBP/AUD hits above 2.14 as we are seeming to hit a resistance level at 2.15 due to profit taking.

I am offering a free rate alert service to notify potential clients of any spikes or troughs in the market. feel free to drop  me an email if you would like to take advantage of this service. Please be sure to include your requirement, what are you hoping to achieve and time scales.

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.

GBP/AUD Rates Rise Despite Poor UK Retail Sales Figures (Matthew Vassallo)

GBP/AUD rates have spiked up again during Thursdays trading, despite another set of poor UK Retail Sales figures. The latest figures, which were released this morning, came in under expectation at 0.1%. The markets were expecting a figure of 0.4% and immediately Sterling lost value against the majority of major currencies but in fact has made a gain of approximately a cent against the AUD.

The reason for this spike can be attributed to falling global commodity markets and due to Australia’s reliance of the export of their vast supplied of raw materials, yesterday’s report was always likely to hurt the AUD in the short-term. The markets have viewed this in a more negative light than the poor UK data and with on-going economic problems in China also hurting the Australian economy (due to the trade links between the countries), it is not a surprise to see the AUD struggling.

Personally I anticipate GBP/AUD rates to remain volatile in the short-term and although the AUD has found support around the current levels over the past month, I do not expect a major turnaround for the AUD under current market conditions.

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

Sterling SPIKING for AUD buyers

The price to buy Australian dollars has fallen over the last 24 hours as data from the UK strengthens the Pound. This came from a surprising increase in Inflation data from the UK which increases the likelihood of an interest rate hike, increasing investment in the Pound and making it more valuable. This gives AUD buyers the best opportunities seen for years as rates are currently at the top of the range we expect to see for the remainder of the month. As a result if you have AUD to buy within the next fortnight it may be prudent to buy now at these highs to avoid the disappointment.

Over the next fortnight there is little economic data due which will have an impact on the forecast for either economies hence the expectation is that levels will fall back as traders take their profits out of the market.

Moving forward, through the rest of the year I have the view that buying AUD will become cheaper still. As we continue to see the real picture in China come through this is bound to have an impact on both the demand for AUD  exports and the value of these commodities.  I would not be surprised to see GBPAUD rates over 2.20 before the year end.

Great news for AUD buyers however AUD sellers should be very wary. So if you have AUD to sell in the next 3 months I would urge you to look at your options, you can use Forward contracts to help even if you don’t have access to all your funds at this point.

For more information, live forecasts or a free quotation please get in contact. Email me directly, STEVE EAKINS via hse@currencies.co.uk

Huge rally for Sterling vs Australian Dollar following UK Inflation Data (Tom Holian)

Sterling vs the Australian Dollar exchange rates have risen by as much as 4 cents during today’s trading session hitting close to 6 year highs to buy Australian Dollars.

UK inflation data came out better than expected this morning which means an interest rate hike is now back on the agenda for the Bank of England.

Earlier this month only 1 of the 9 members voted for a rate hike with the expectation for perhaps 2 or 3 which saw Sterling fall a little but with the data this morning this could influence a change in the voting pattern in September’s meeting.

The Chinese issue from last week has also weakened the Australian Dollar and I would not be surprised to see a rate cut before Christmas in Australia.

If this does occur I expect to see Sterling go up even further against the AUD in the long term.

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