Daily Archives: May 4, 2017

GBP/AUD hits 7 month high! (Daniel Johnson)

Will the Pound continue to strengthen?

Sterling has strengthened significantly against the Australian Dollar of late. GBP/AUD now has hit 1.74, the highest levels in the last seven months. This is due to impressive UK PMI (Purchase Managers Index) figures and UK construction data.

Despite positive data from down under from the service and tourist sector, there  are worrying signs of an overpriced property market. It is a similar situation to London with properties in high wage areas becoming far too overpriced, specifically Melbourne and Sydney. The problem is being exasperated by foreign investors willing to pay the excessive prices. During the early hours we will see the release of Australian housing sector figures and this could well influence GBP/AUD levels. New House sales being the key data release.

The Reserve Bank of Australia (RBA) also kept rates on hold at 1.5% for the ninth month in a row.

Australia are heavily dependent on the Chinese purchasing their raw materials and we have sen a decline in Australian trade balance date which has caused the Aussie to dip in value. Chinese growth although positive is slowing.

Domestic Factors that will influence GBP/AUD

A snap election would usually weaken the currency in question, but on this occasion we have see it strengthen. It was a shrewd move by Theresa May to call an election when the competition is so weak. Sun Tzu would be impressed. With the Conservatives clear favourites to win the election it has seen investor confidence grow as a conservative government is seen as a positive for the UK economy. The pound has rallied as a result. I would not expect a surge in strength if they are elected however as the market moves on rumour as well as fact and I think a conservative victory has already been factored into current GBP/AUD levels.

If you have a currency exchange to perform in the coming days, weeks or months then you are more than welcome to speak with me personally as I will be more than happy to assist you both in trying to time a transaction and getting you the top market rate when you do come to make your transfer. A small improvement in a rate of exchange can make a huge difference, so it is well worth taking a couple of minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavour to get back to you as soon as possible. Thank you for reading.

 

 

Will the Pound continue to rise against the Australian Dollar? (Tom Holian)

The Pound has continued to hit recent highs to buy Australian Dollars as commodity based currencies have started to weaken recently.

Following the news released last Friday with US GDP which came out at its lowest level in 3 years and combined with the lack of an interest rate hike in the world’s leading economy this has seen the Australian Dollar lose value against the Pound.

This has created some good opportunities to buy Australian Dollars and with a 10 cent gain since last month this can be as much as £7,500 on a currency transfer of AUD$200,000 in the last month alone.

The Reserve Bank of Australia confirmed on Tuesday that it will be keeping interest rates on hold for the time being and this has also caused the Australian Dollar to weaken.

The Australian Dollar has also struggled overnight with the release of worse than expected Australian Trade Balance data as well as lower than expected Chinese Services data. As China is such a large trading partner with Australia any negative data release will often lead to weakness for the Australian Dollar vs the Pound.

Tomorrow morning the focus will move towards the housing sector down under and as the sector showed a fall last month another fall could see further problems ahead for the Aussie Dollar.

However, we are now less than 5 weeks away from the UK’s general election and this is likely to cause a lot of volatility for the Pound vs the Australian Dollar in the weeks ahead so expect volatility to increase during this period especially when the campaign gets in to full swing.

If you have a currency transfer to make and would like to save money on exchange rates when buying or selling Australian Dollars then feel free to contact me directly.

If you’re emigrating or buying a property then the difference compared to using your bank can potentially run into the thousands.

For further information email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk