Dovish Reserve Bank Of Australia Sinks AUD Rates Leaving Investors Unsettled

The outlook for AUD was looking to the Reserve Bank of Australia (RBA) meeting which occurred yesterday. The current trend of AUD looked as if the RBA would take a ‘dovish’ approach to their monetary policies. Investors had hoped that this would not be the case as the currency would lose momentum. As the minutes were released from the meeting yesterday this seemed to be exactly the case.

Sharp Retreat For Australian Dollar

The Reserve Bank of Australia’s minutes were released yesterday, which caused a sharp retreat of AUD in the market. The meeting, which covered monetary policy, showed a bank that was still poised to cut interest rates despite current record lows. The key official cash rate was left at 0.75% but the minutes revealed that the possibility of another cut could not be ruled out.

Likelihood of a Further Interest Rate Cut Increases

With the findings of the minutes from the RBA, it is more likely than ever that interest rates will be cut to a new record low before long. Policymakers in the meeting saw a clear case for the fourth rate cut of 2019, but have decided to wait and observe the effects of previous rate cuts before moving forward. The bank highlighted that only gradual progress has been made so far which gave reasoning to potential future cuts. The minutes also revealed that whilst members has judged that lower interest rates were supporting the economy, they also noted the possible negative impacts of lower interest rates on savers and for confidence in AUD.

GBP/AUD Interbank Exchange Rate Slumps Amidst RBA’s ‘Dovish Tilt’

Reports have suggested that the pound to Australian dollar exchange rate had slumped following the news of a ‘dovish’ RBA. The Aussie dollar edge up against the pound despite the proposed considerations of another rate cut. The trading rate was around AU$1.8953 yesterday. The GBP will be hoping for a boost following the YouGov poll, released after last night’s live head-to-head debate between Boris Johnson and Jeremy Corbyn. The pound continues to edge higher on hopes that a Tory majority will be achieved in December’s elections.

In regard to today’s outlook, AUD could surrender some of yesterdays gains following the release of Westpac’s Leading Index. Should the index slump it could weigh on AUD. Meanwhile for GBP, if the polls suggest further support for the Conservatives it will likely give a further boost to the pound sterling.

If you are in the process of buying or selling Australian dollars and would like a free quote then contact me directly, Tom Holian, I look forward to hearing from you. teh@currencies.co.uk

Dovish Reserve Bank of Australia Sinks AUD Rates Leaving Investors Unsettled

The outlook for the AUD was looking to the Reserve Bank of Australia (RBA) meeting which occurred yesterday. The current trend of the AUD looked as if the RBA would take a ‘dovish’ approach to their monetary policies. Investors had hoped that this would not be the case as the currency would lose momentum. As the minutes were released from the meeting yesterday this seemed to be exactly the case.

Sharp Retreat For Australian Dollar

The Reserve Bank of Australia’s minutes were released yesterday, which caused a sharp retreat of the AUD in the market. The meeting, which covered monetary policy, showed a bank that was still poised to cut interest rates despite current record lows. The key official cash rate was left at 0.75% but the minutes revealed that the possibility of another cut could not be ruled out.

Likelihood of a Further Interest Rate Grows

With the findings of the minutes from the RBA, it is more likely than ever that interest rates will be cut to a new record low before long. Policymakers in the meeting saw a clear case for the fourth rate cut of 2019, but have decided to wait and observe the effects of previous rate cuts before moving forward. The bank highlighted that only gradual progress has been made so far which gave reasoning to potential future cuts. The minutes also revealed that whilst members has judged that lower interest rates were supporting the economy, they also noted the possible negative impacts of lower interest rates on savers and for confidence in the AUD.

GBPAUD Interbank Exchange Rate Slumps Amidst RBA’s ‘Dovish Tilt’

Reports have suggested that the pound to Australian dollar exchange rate had slumped following the news of a ‘dovish’ RBA. The Aussie dollar edge up against the pound despite the proposed considerations of another rate cut. The trading rate was around AU$1.8953 yesterday. The GBP will be hoping for a boost following the YouGov poll, released after last night’s live head-to-head debate between Boris Johnson and Jeremy Corbyn. The pound continues to edge higher on hopes that a Tory majority will be achieved in December’s elections.

In regard to today’s outlook, the AUD could surrender some of yesterdays gains following the release of Westpac’s Leading Index. Should the index slump it could weigh on the AUD. Meanwhile for the GBP, if the polls suggest further support for the Conservatives it will likely give a further boost to the pound sterling.

If you are in the process of buying or selling Australian dollars and would like a free quote then contact me directly, Tom Holian, I look forward to hearing from you. teh@currencies.co.uk

GBPAUD Outlook Rates Break 1.90

To start the week the GBPAUD interbank exchange rate has rallied higher, with rates bursting through the 1.90 range for the pairing. The pound looks like it has started the week off on the front foot, making gains against all major currencies. This is despite the impending general election, which could be set to stir up some uncertainty. Meanwhile, Aussie employment data disappointed and sent the currency on a further downward spiral.

UK GBP Data Disappoints But Doesn’t Inflict Damage on the Driving Force

The UK’s Gross Domestic Product (GDP) data was recently released, the figures were lower than expected at 0.3% (with an expectation of 0.4%). The ongoing Brexit uncertainty has had a minute effect on the GBP exchange rates over the past few years. However, the weak data did not alter the course of the Pound Sterling to Australian Dollar exchange rate as the prospect of a Torie majority is currently the main driving force for the GBP. The current polls have placed Boris Johnson with a slight majority but volatility is expected and the outcome of the elections could swing either way.

Australian Employment Data Returns Poor Values, Adding Salt into the Wounds

An already struggling Australian dollar was hit with more bad news to start the week. The unemployment figures came back at 5.3%, rising from 5.2% previously. This negatively impacted the Australian economic outlook and disappointed the markets. The Reserve Bank of Australia (RBA) have previously cut interest rates three time this year and do not plan to make any more until at least 2020. Attention is turning to today’s (Tuesday) Reserve Bank of Australia (RBA) minutes which will likely offer some insight into the banks standpoint on future monetary policies.

AUD Waits for US-China Breakthrough for a Boost of Optimism, Whilst GBP Clings to Tory Majority

The struggling AUD is facing a slump as its traders await positive news from the US-China talks. The US appears firm on its mention of only agreeing to a deal that is positive for the US. This is likely to be what has caused a recent slow on the trade deal progress. Little information has broken from either camp and so investors are left twiddling their thumbs. Meanwhile, those investing in GBP will be hoping that recent news that a Tory majority is likely to be the outcome of December’s election, in a bid to keep the optimism behind the GBP rolling. The findings from the RBA’s minutes in today’s meeting will be telling of the future for the AUD and its monetary policy. There is a chance that they may take a ‘dovish’ turn to try to recover the falling currency.

For more pound and AUD news, keep up to date with our daily blogs. Alternatively, if you have a currency requirement you can get in touch on +44 (0)1494 416 503 to discuss these factors in more detail or contact me directly at dcj@currencies.co.uk.

GBP/AUD Interbank exchange rate looks set to rally in a bid to avoid upcoming pressures

Both the pound and the Australian dollar have faced issues over the past couple of weeks which have consequently negatively impacted their currency strengths. There are ongoing concerns surrounding the GBP and the UK’s Brexit campaign that has kept investors guessing. The AUD on the other hand is facing a barrage of damages, with US-China trade talks losing traction paired with recent under-performance in economical data captaining the ship of decline.

Both Currencies in a Sorry State to Start the Week

Last week saw an unpredictable sway for the pound, with October’s UK retail sales declining and annual sales seeing the weakest increase in a year and a half. Added to this, the UK’s inflation had slumped to a three-year low. The GBP did pick up a little in the week thanks to some political optimism; signs that the conservatives may pull through and win the election in December gave a boost to the currency.

Meanwhile, for the AUD, a poor performing annual wage growth and an unfavourable consumer sentiment begin to weigh on the Australian dollar. The optimism previously associated with the US-China trade talks declined as the US looked unlikely to agree on a deal unless it was fitting for them. This brought down the value of the AUD, which is heavily affected by the strength of the Chinese economy due to their extensive trading. Australia also suffered its sharpest decline in three years, which has sparked calls for action to help alleviate wages and economic activity.

GBP Looks to Slide Following Bank of England Inflation Report

The Bank of England is set to release its inflation report on Wednesday, and analysts have predicted that the GBP will slump against the AUD following its release. Optimists however suggest that the pound could rise against the Aussie dollar should surveys report back in favour of the Conservative Party reclaiming power in December, which would increase the chances of the UK leaving the EU by the end of January.

Dovish Reserve Bank of Australia Could Weigh on the AUD Exchange Rates

The RBA’s Assistant Governor, Christopher Kent is set to make a speech at the start of this week. There is potential for the AUD to slide against the GBP. This will likely occur if he emphasises the weakness of the Aussie economy and moves towards a ’dovish’ monetary policy. Flashing forwards to Thursday, the AUD could claw back some gains as the Commonwealth Bank services Purchasing Manager’s Index (PMI) is released. If November’s PMI rises are higher than expected, the AUD is likely to rally.

Investors in the AUD will be hoping for a positive response from Thursday’s PMI alongside more positive news from the US-China trade talks. If both proceed in a positive manner there is a chance that the AUD can lift itself out of its current sorry state and reclaim some of its previous gains.

Feel free to email me, Dayle Littlejohn if you would like to know more on the factors affecting the AUD/GBP pairing or have an upcoming currency transfer drl@currencies.co.uk.

Sinking Trend Continues for Australian Dollar Following Unemployment Figures

The AUD continued to underperform yesterday, with the jobs data bringing bad news for the economy and the currency itself. The poor performance of the Australian economy could be leading the AUD down the path of another future rate cut from the Reserve Bank of Australia (RBA).

Jobs Figures Turn up a Surprising Number, but it Was Not in favour of the AUD

Investors were left deflated on Thursday as the awaited jobs data for Australia was released. There were optimistic hopes for the data and the potential boost it could give to the troublesome Aussie Dollar. But with this, there were also fears that disappointing figures may bring about further decline for the currency. Much to the investor’s disappointment, the latter was exactly the case.

The jobless rate rose to 5.3% from 5.2% in October, with 19,000 jobs being shed last month. The market had looked for a 16,200 gain as a measure to keep the jobless rate steady at its previous level. This data shocked many and was certainly not welcomed with open arms by the Reserve Bank of Australia (RBA). To add salt into the wounds, poor retail sales and industrial production figures were released from China. The Chinese economy is important to Australia’s economy and currency outlook given the significant trading between the two.

RBA Weighs up its Options Before Making Any Further Cuts

The RBA has been under pressure lately with the underperformance of the AUD. It has already cut its interest rates three times in 2019 and appears to want to keep it that way. However, the pressure is building, and experts are hinting that a cut may occur in early 2020. The RBA has proposed that it will “wait and see” what the effects of previous cuts are before making any more, with rumours that this may suggest it could be around February 2020 before cuts are made again.

Outlook For AUD Looks Bleak as GBP Gains Against AUD

The pound gained against the Australian dollar early yesterday morning, which pushed the GBPAUD interbank rate to some of the highest levels seen in the past 3 years. The rate reached around 1.9018, and the GBP mainly has the AUD’s weakness to thank for this. The disappointing jobs figures have only weighed further on an already declining Aussie dollar.

Financial markets are now expecting another 0.5% interest rate cut by the RBA in February 2020. The likelihood of this is quite high following recent underperformance. Investors will be eager to observe the cards played by the RBA in the upcoming months.

Feel free to email me, Dayle Littlejohn if you would like to know more on the factors affecting the AUD/GBP pairing or have an upcoming currency transfer drl@currencies.co.uk.

More Bad News for the Australian Dollar Following Trade War Breakdown and Poor Wage Data

The recent performance of AUD has not been spectacular to say the least. With underwhelming performances in recent figures and pressure being applied from the US-China trade wars, AUD rate has been in a decline.

US-China Trade Talk Hopes Knocked

The trade war has been ongoing for several weeks now and has had AUD firmly in its grips. Hopes were running high on Tuesday that president Trumps speech in New York may have been optimistic and given the market a boost. However, reports from Wednesday displayed the opposite, in that his speech left the market disappoint. There was a hope that he would divulge on the China talks, but instead proceeded to set out his stall for re-election in 2020. The potential boost to the market was flattened.

AUD Looks to Jobs Data to Reinstate Optimism

Wednesday left the Aussie dollar a little in the dark as wage data was released. The figures did not increase but held steady. This resulted in little effect on AUD strength but consequently did not do any damage either. Today (Thursday 14th), traders of AUD will be eagerly awaiting jobs figures which are due to be released. Current figures have shown that the Aussie jobless rate has risen this year, with a slowing of employment growth also. Should the jobs data disappoint, it is likely to undermine AUD’s recent resilience putting further pressure on the already stretched currency.

Australian Dollar Largely Balances on the Outcomes of Unfolding News

AUD is being largely affected by current affairs. With the disappointing revelations in Donald Trump’s recent speech, the market has reacted with a pessimistic view. This is not good news for AUD who would benefit from a positive deal for China. But the US seems to have given off a feeling that they aren’t seriously invested in obtaining a partial deal with China.

Investors in AUD will also been keeping an eye on today’s job data in hope that the figures turn out positive. Recent data has not been overwhelming but has held weight in some sectors. Should a positive return occur, AUD would get a much-needed boost to lift it out of it’s current two month low. The pressure on the Reserve Bank of Australia (RBA) to cut their interest rates is beginning to pile on, but with three cuts in 2019 already, investors are worried for how this will affect the currency and its strength against others like GBP.

For more sterling and Australian dollar news or if you have a currency requirement you can get in touch with me, James Lovick, directly at jll@currencies.co.uk, or call +44 (0) 1494 360 899 to discuss these factors in more detail.

Australian Dollar Rate Remains Flat After Unimpressive Performance from UK Figures

Yesterday (Tuesday 12th) saw the release of the UK’s latest labour figures. Both the UK and interacting currencies were hoping for positive results in an attempt to give them a much-needed boost in the market. However, as the figures were released today some have described them as ‘unimpressive’.

GBP Slumps as Figures Underwhelm

Many were hoping that yesterday’s labour figures from the Office for National Statistics (ONS) were going to be promising. The unemployment rate provided a good response with a fall from 3.9% to 3.8% in September. This matches the 44-year low observed earlier in the year and beat expectations that predicted the figure to remain steady. Wage growth figures on the other hand were not as impressive, with average earnings declining from 3.7% to 3.6%.

The results were not terrible by a long shot, but it did resemble the slowest pace of wage growth in the past 4 months and given a recent fall in vacancies, it may be a sign that the UK’s labour market is slightly degrading. As a result, feelings toward the GBP were pessimistic and this showed in the GBP rate taking a slight hit.

AUD Still Clings on to Hope of a Trade War Deal

The AUD continues to keep a close eye on the events surrounding the US-China trade talks. With remarks coming from Donald Trump a few days earlier denying agreeing to tariff rollbacks, the advancements in the deal were showing signs of slowing. The market will have kept tabs on the president at last night’s appearance at the New York Economic Club. Given his unpredictability, investors in the AUD will be looking to see what unfolds.

Economists Predict Pressure on the GBPAUD Exchange Rate in Upcoming Days

As we roll into the second half of the week, attention turns to the upcoming consumer price index (CPI) data from the UK. Analysts have revealed that it is likely that the CPI figures will highlight a slowing in the UK inflation from 1.7% to 1.6%, its lowest level since December 2016. This is likely to increase the chance of the Bank of England cutting interest rates in 2020.

Equally, AUD investors will be anticipating results from Australia’s quarterly wage price index which was released overnight. Should the wage growth slow it is likely to put pressure on the AUD and increase the chances of the Reserve Bank of Australia cutting their interest rates also.

If you are in the process of buying or selling Australian dollars and would like a free quote then contact me directly, Tom Holian, I look forward to hearing from you. teh@currencies.co.uk

Australian Dollar Starts Week Off on the Backfoot with US Looking to Extend Worries

The AUD started its first trading day of the week on the backfoot this Monday. The previous week’s performance meant that the GBPAUD interbank exchange rate is sitting at around $1.876 AUD, at the time of writing. The ongoing US trade deals were keeping many countries on the edge of their seats as a preliminary deal looked like a done deal. However, recent unfolding’s have saw president Trump denying tariff rollbacks requested by China.

Trump Stands in the Way of Currency Boosts Across the World

The US-China trade deals have been in focus over the past couple of weeks. Progress was looking good as the United States and China looked to be agreeing with each other. But Monday revealed that president Trump was very reluctant to rollback the US tariffs on China. Trump denoted that he did not agree to any such deal which has poured cold water on the optimism of many. With a lower chance of the US-China trade deal looking more unlikely after this revelation, the AUD has taken a hit, and with the Australian dollar being a proxy for China, the disappointing news weighed heavy on the currency.

Disappointing News Shakes up Global Economy

The AUD is not the only currency affected by the US-China trade news. The USD itself saw a dip in its trading rate yesterday as investors looked to process Trump’s decision on tariffs. Ironically, the resolution for the global market dip would be for the trade war to cease and a roll back of the levies could resolve the low performances across the board. But Trump seems adamant and this only drives a further wedge between the two countries, dropping hopes of a deal working out.

AUD Outlook Following the Trade Deal News

As mentioned, the Australain dollar heavily relies on China and with the deal looking cold at the minute, Australian optimism for a boost from the deal is drying up. Looking forward, the upcoming Australian business conference is looming and looks to have the potential to weaken the AUD further. Analysts are expecting a loss as the Aussie business sentiment is looking to remain pessimistic as a result of the ongoing US-China trade dispute.

The AUD will hope that Trump gets back on track with the trade talks as the current negative potential outlook looks to sink the AUD, should things turn positive however there will be a lift which many are crossing their fingers for.

Feel free to email me, Dayle Littlejohn if you would like to know more on the factors affecting the AUD/GBP pairing or have an upcoming currency transfer drl@currencies.co.uk.

Wildfires threaten Australian exports as drought rages on

Wildfires have been blazing across the Australian east-coast over the weekend. With New South Wales being hit hardest. Reports have suggested that around 70 separate fires are being tackled across the state. This is a huge blow for Australia as resources are now being poured into the emergency services to try to put out the inferno as well as tend to those injured by the fire.

Honey prices set to skyrocket as fire wreaks havoc on the environment

Sadly, the fire has taken the lives of three individuals, with many more reported to be injured. But there are also other victims like bees which have been caught up in the wildfires, alongside this the flowers necessary for bees to cultivate their honey have also been destroyed. Beekeepers in the local area are reporting around an 80% drop in production, with predictions that the price of honey could jump up by 10% over the coming weeks.

Even after the fire, the amount of drought left behind ensures that the flowers do not grow, and even if they do they do not produce as much nectar as they once did. This is set to put pressure on both the bees and beekeepers alike.

Australian export figures prepare for a drop as a result of the fires

Though honey production isn’t one of the major sectors in the Australian economy, it does make up a small part of its total Gross Domestic Product (GDP) and is a contributary factor. Plus, bees are essential for the crucial pollination of flowers and without them the food industry would suffer. A spokesperson for Hive +Wellness mentioned that the beekeeping industry is not a billion-dollar industry, but it does support the billion-dollar industries and highlighted that it is the cornerstone of Australian agriculture.

Knock on effects from the wildfires for the AUD

With such a widespread operation in place to try to put out the fires which are alight across the state of NSW, there is likely to be a knock on effect for the Australian dollar. The honey production in the country will take a hit and thus will not be able to supply as much as they may have before the fires. This will no doubt mean less GDP from exports for the month and those to follow while the industry recovers. Alongside this, the money spent on emergency services and clean-up operations is likely to be an unexpected usage of Australian budgets.

With reports of the GBPAUD interbank exchange rate at a low of 1.8625 to start this week after last week’s decline, the AUD will be looking to the third quarter wage data which is due Wednesday and October’s jobs data which is expected Thursday for a lift of optimism amidst this unpredictable news of the wildfires.

If you would like to learn more about current GBP/AUD exchange rate and future events that may influence them, you can get in touch on +44 (0)1494 416 503 to discuss these factors in more detail or contact me directly at dcj@currencies.co.uk.

Australian Dollar rises with US trade deal progress, but BoE looks to halt progress

The AUD is currently being held captive at the hands of many of the current events around the world. Trade talks with the US and China still rage on, whilst the Bank of England (BoE) discusses its options regarding the rate decision split.

US-China trade deal begins to make some traction

The trade deal talks between the United States and China have been in motion for several weeks now. Progress was beginning to slow as the US president, Donald Trump appeared to be dragging his heels with meeting China’s demands. However, over the past 24 hours, reports have suggested that he is now taking a more open approach and appears to be willing to work to the demands from China.

This news positively affected the Australian dollar as the deal looks more promising with both sides willing to cooperate with each other. This gave a boost to the AUD this Thursday, with hopes that further progress will soon ensue, further strengthening the currency.

Bank of England talks drag down GBP/AUD exchange rate

It looks as though the BoE is hinting at potentially further cutting rates in 2020; this speculation has caused trouble for the GBPAUD interbank exchange rate which fell by 0.6%. Two key members of the BoE voted in favour of a cut in the rate. This caused a split but ended in the interest rate being held at 0.75%. However, the split decision did not win over many, causing the observed loss in investor backing for the GBP.

Aussie trade balance figure saves the day for the AUD strength over the pound

On Thursday, the AUD rose against the pound. This was as a result of September’s Australian trade balance figure being released. The figure reported a raise from 5.926 million to 7.180 million, smashing the forecasts. It was also a good month for Australia’s exports as they ballooned to a new high. Over September, Australia shipped out 43.2 billion worth of services and goods. As a result, the AUD has benefited and new hopes for the Aussie economy have emerged once more.

The AUD is relatively volatile at the minute, but with positive news on the trade deal front paired with positive figures in Australian trade, the AUD appears to be faring well. Buyers and sellers of AUD will keep a close eye on the Bank of England’s stance on interest rates in the coming weeks as rumours of an interest cut suggest it may occur soon.

Feel free to email me, Dayle Littlejohn if you would like to know more on the factors affecting the AUD/GBP pairing or have an upcoming currency transfer drl@currencies.co.uk.