Daily Archives: June 14, 2017

Pound to Aussie Dollar exchange rate falls again, will the downward trend for the Pound continue? (Joseph Wright)

The Pound to Aussie Dollar buying rate dropped again throughout today’s trading session, with the exchange rate dropping by 0.65% throughout the day up until the time of writing.

Not only are the financial markets and investors concerned about the political situation in the UK, with the outcome of the election being one of the worse case scenarios for the UK as it resulted in a Hung Parliament, but the rising rate of Inflation and lower wage growth becoming an issue that could rise to the surface very quickly.

If the rate of inflation continues to climb but the rate of wage growth continues to decline (as figures released today showed it happening for the 3rd month in a row), I think the Pound could find itself trading at a much lower rate than we’re currently witnessing.

My reasoning behind this is because the UK consumer has been propping up the UK economy since the Brexit, which has allowed the ship to steady to an extent after all the warnings from market analysts should the UK pubic have voted to leave the EU.

Should the current trend of higher costs of living in the UK continue I think the Pound may fall as I previously mentioned, and if you would like to be kept updated regarding this matter as well as any others that can potential impact GBP to AUD exchange rates, do feel free to get in touch with me.

There’s a plethora of data due out tomorrow for the UK specifically, so feel free to contact me overnight to discuss these events and how they could impact any short term currency exchange plans you may have.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

GBP/AUD Rates Trading Under 1.70! (Matthew Vassallo)

GBP/AUD rates are once again trading under 1.70, as the Pound’s struggles continue following last week’s unexpected election results.

The Pound has seen its gains over the past month dissipate, with 1.70 becoming a key threshold for the pair.

Those clients holding both Sterling and AUD will now be asking themselves how the pair will react over the coming days? Whilst I don’t anticipate a major advancement for the Pound whilst so much uncertainty hangs over the UK economy, any deal between the Conservatives and the little know DUP party from Northern Ireland, could bring an element of stability back to the market.

Political or economic uncertainty is generally a currencies undoing and the Pound’s struggles over recent days is proof of this. Once a government has been formed, then it is far more likely that investor confidence will rise and the Pound could stabilise as a result. This could have an instant negative impact on the AUD and as such the current sell prices for those clients holding AUD look very attractive indeed.

Whilst the AUD has also been supported due to the Chinese economy stabilising and accelerated growth in its own economy, it is always left somewhat vulnerable due its status as a commodity based currency.

For example, the Trump effect is causing investors to panic and this is unlikely to benefit riskier commodity based currencies such as the AUD in the long-term. The AUD’s value is inextricably linked to Australia’s booming export market and any downturn here will likely knock its value. Due its reliance on global growth a change in fortune for China, or concerns regarding the US can cause investors to sell off their riskier assets (such as the AUD) and move funds into ‘safe haven’ currencies such as the CHF.

Ultimately, this means that investors will look to GBP/AUD for example and see the opportunity to make more money on bigger market swings and thus, the pairs value can fluctuate quite substantially.

The current market is extremely unpredictable and with global growth fragile and concerns over the UK economy ahead of what is likely to be arduous Brexit negotiations, I would be tempted to look for short-term market opportunities.

If you have an upcoming GBP or AUD currency transfer to make 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 on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk.