Sterling up against the Australian Dollar (Tom Holian)

Sterling has had a good start to the week as predicted in my previous post with the release of the Ernst & Young Item Club report which has upgraded the growth forecast for the UK in 2016.

This has seen Sterling strengthen across the board and lead to some good opportunities to buy Australian Dollars with Sterling.

RBA minutes are due out tomorrow and this could see Sterling rally against the Australian Dollar taking exchange rates higher if there is a hint that the RBA may cut interest rates next month.

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

 

Australian Dollar set for difficult week ahead (Tom Holian)

GBPAUD exchange rates began the week with a fall but on Wednesday we saw an increase of 3 cents from the high to low as fears escalate within Europe that Greece will have problems with their current debt arrangements.

As the uncertainty continues this caused a huge sell off for the Australian Dollar, New Zealand Dollar and the South African Rand which are all commodity linked.

The Greek economy was also downgraded again which has caused a loss of confidence for global investors.

Next week could be difficult for the Australian Dollar with the release of the RBA minutes on Tuesday.

At the previous meeting they decided to keep interest rates on hold down under and the minutes will give us an insight as to whether they may cut rates at their next meeting in early May.

Inflation data in Australia is announced on Wednesday and if the figures come in lower than expected this could cause the Australian Dollar to weaken providing some excellent opportunities to buy Australian Dollars on Wednesday.

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

 

 

 

Rates continue to favour AUD Buyers (Joshua Privett)

Recently we have had one of the few glimpses into the state of the Chinese economy allowed to Western economies. The soft data was troubling. While the Chinese economy is still growing at a staggering 7% per year, something European economies can largely only dream of, this is the first significant fall away from their standard 10% growth rate for many years. China weathered the storm well during the recession, but now the slow-down is evident ant telling. Loans were down, as well as other indicators of economic stagnation, that have lead to further Australian Dollar weakness.

China’s rapid growth and huge investment in infrastructure have driven demand for materials which fueled Australia’s mining boom. Poor data coming out of China has a substantial affect on the Australian dollar as a result, as poor Chinese demand will weaken their exports. The resulting job losses and lower profits weaken confidence in the Australian economy, and therefore the value of the Dollar.

Yet the rates are still off the near 2.0 figures we were enjoying a few months ago. The general election is the main issue. Sterling weakness is matching the Australian Dollar weakness hit for hit, as the potential for a hung parliament in the UK seems all but certain.

Therefore, there are two things to consider. On Tuesday the RBA will release the minutes of their latest meeting. Last time they didnt think that a change in the interest rate was going to make a positive impact on the Australian economy. Lowering the rate lowers returns, so the AUD value was bolstered by this confident news in the Australian Banking sector. It is likely we will get a repeat, and this is the last bit of significant news for the Australian economy for the next few weeks.

The second is that in the last election, weakness in Sterling was most prominent in the last two weeks going into the election, which we are on the cusp of entering. As such we have the potential for a bolstered Dollar and weakened Sterling occurring simultaneously.

If you have an Australian Dollar purchase coming up soon, or indeed over the next few months (as the aftermath of elections still hold down the value of a currency) I would recommend emailing me over the weekend on jjp@currencies.co.uk to discuss your options to peg the currently favourable exchange rates, before they snap back against your favour.

 

 

When will the RBA cut their base rate?

The RBA (Reserve Bank of Australia) are scheduled to cut their base rate once more this year, it is not in the Australian economy’s interest for the currency to be too strong! Just when this may happen is unclear but the RBA have actively been targetting a weaker AUD in the hope of boosting exports and stimulating the economy. The crash in commodity prices in recent years has hampered growth in the Australian economy and weakening the currency may help artificially improve the outlook.

There is a growing concern about the extent to which exchange rates will improve for those selling AUD with the UK’s General Election just around the corner. Depending on just how the election pans out we could be seeing some short term GBP weakness presenting an excellent opportunity to buy your pounds. For more information and to be kept up to date with the latest news, please email jmw@currencies.co.uk

Australian Exchange Rate Forecast – Andrew Bromley

Overnight Australian employment data has provided a strong start for the Aussie, with a 2 cent correction made already. The headline is that there was an improvement in the ‘employment change’ figure, and subsequently a reduction to the number of people unemployed. These figures are a surprise to the markets, as generally speaking employment is a concern across Australia due to the slow down in primary exports. Australia saw massive growth economically due to Chinas desire to build, and the subsequent steel requirement relies on Aussie Iron Ore. However, Chinese growth has slowed substantially and the Aussie weakened as a result.

With the UK General Election taking centre stage over the next few weeks, I wouldn’t be surprised to see the Pound weaken further. If you have an AUD exchange, please feel free to get in contact to discuss. I am contactable on either 01494 787 478 or email AJB@currencies.co.uk.

Sterling fights back against the Australian Dollar (Tom Holian)

During the last few days we have seen a huge improvement for GBPAUD exchange rates following the release of much worse than expected data from China.

Both Chinese imports and exports both dropped and the Trade Balance fell from an expected $45bn to just $3bn.

Indeed, all the commodity based currencies which includes the Australian Dollar fell against the Pound.

This morning the Chinese released both GDP figures and Retail Sales which also saw a fall and has led to Australian Dollar weakness.

Tomorrow’s data down under will come in the form of employment data for March so any change could see further volatility for GBPAUD exchange rates.

We end the week turning the focus back to what is happening in the UK with unemployment data which if it comes in line with the expected 5.6% I think we could end the week on a high for Sterling vs Australian Dollar.

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

 

 

Australian Dollar Weak – Time to BUY AUD? ( Andrew Bromley )

Once again the Chinese data released this week has weakened the Aussie, providing good opportunities for AUD buyers. The Chinese economy is a key user of Australian Iron Ore, so the slowdown indicates bad news for the Australian Dollar.

I personally feel that the Pound is due some weakness in the build up to the General Election, however it seems to be leaving it later than usual! The build up to the last Election saw the Pound lose up to 4% against major currencies, meaning a drop in to the mid 1.80s could be on the cards.

If you are buying AUD therefore, it may be wise to take advantage whilst the rates are in the 1.90s. I do think that there will be a further interest rate cut in Australia (to weaken the Dollar) however the weak Pound may overturn any potential Australian Dollar weakness.

If you do have an exchange requirement, please feel free to get in touch. Either drop me an email to AJB@currencies.co.uk or call the trading desk on 01494 787 478 and ask for Andrew Bromley.

Selling AUD Opportunity!

The Aussie is predicted to fall in the coming months as the RBA cut further their base interest rate. There is also uncertainty over the UK election which could really help indicate a good strategy with which to approach any AUD to GBP trades clients might have to consider. Basically selling sooner rather than later really does appear to be the best way to go!

Once you have made up your mind that you do want to do such an exchange we can then help with practical assistance catching the right spikes for you. For example the AUD soared to 1.90 recently against the pound which I highlighted to many of may clients. Do you have any future trades involving the AUD or GBP? If so why not speak to me on jmw@currencies.co.uk to find out the latest news and information to help you get the most for your money.

 

Chinese economic data much worse than expectations leading to Australian Dollar weakness overnight (Daniel Wright)

We have seen a boost for anyone looking to  buy Australian Dollars in the near future following fairly poor economic data from China overnight.

Import, export and trade balance data all came out much worse than had been expected which has weakened off the Australian Dollar which had been absolutely flying last week following no changes in interest rates by the RBA.

Personally, I feel we should head close to or even above 2 for Sterling into the Australian Dollar however you must be extremely wary of the general election which is currently hotting up in the U.K and appears to be fairly close.

The problem this brings is political uncertainty which is generally quite damaging for a currency as investors and speculators will tend to steer clear of the Pound until we see something a little more concrete regarding who will be running the U.K.

If you have Australian Dollars to buy it may be prudent to look at booking out half of your requirement prior to the election to ensure you aren’t fully caught out should rates take a turn for the worse after it.

If you are looking to buy or sell Australian Dollars and you want to get a better rate than your current provider, along with a highly efficient level of customer service then feel free to contact me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to contact you personally to discuss your options and let you know how I can help.

Strong Australian Dollar (Tom Holian)

Sterling vs Australian Dollar exchange rates had a difficult time of it last week falling a few cents from the start to the end of the week.

The RBA decided to keep interest rates on hold down under which surprised some analysts and this led to huge investment into the Aussie Dollar during the early part of the week.

The FOMC minutes published in the US suggested that the US may raise interest rates in June which also led to global investors seeking a higher interest rate yield in the meantime by buying Australian Dollars.

Over the next few weeks the UK goes to the polls which is likely to cause a huge amount of volatility for GBPAUD exchange rates.

At the moment none of the parties are close to forming a majority which could lead to another hung parliament which could be detrimental to Sterling.

However, I do think that the RBA will cut interest rates at next month’s meeting which could help to weaken the Australian Dollar.

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