Daily Archives: June 22, 2017

GBP/AUD Forecast – Will the AUD Continue to Strengthen? (Matthew Vassallo)

GBP/AUD rates have remained flat during Thursday’s trading, with the Pound curbing any further losses following its recent downturn.

Much has been made of the Pound’s detraction, which has come in line with a grave market concern surrounding the political limbo and subsequent economic concerns surrounding the UK economy at present.

UK Prime Minister Theresa May’s decision to call an early election backfired spectacularly and with UK Brexit negotiations already under severe strain and constant scrutiny, investors have turned their back on Sterling.

The AUD continues to surprise and with an upward spike of over 8 cents in the past few weeks. This has helped propel the AUD to near two month highs against GBP and as such many clients will be looking to take advantage of the current rates, with GBP/AUD trading around 1.68.

The AUD is likely to find protection under 1.70 but with the current market unpredictability, any exposed positions could be hit hard by a change in market sentiment.

Being a commodity based currency the AUD relies heavily on global growth remaining strong and whilst the current climate is pushing investors towards the AUD and its higher yielding interest rates, any slowdown in its export sector will hit the Australian economy hard and the AUD will almost certainly suffer as a result.

A strong AUD relies heavily on the export of Australia’s vast supply of raw materials to China, so any clients looking to buy or sell AUD should have a strong interest in Australia’s monthly trade balance figures.

With the UK economy flagging and the tough Brexit negotiations likely to dominate headlines for months to come, it is proving extremely difficult to predict any long-term forecast.

As such I have been advocating that my clients look for short-term market spikes and any spike back towards 1.70 should be taken advantage of by AUD buyers, whilst sellers will be hoping for the recent trend to continue, with a move towards 1.65.

Now is the time to contact a personal currency broker and here I can help guide you through this turbulent market. I assist my clients with the timing of their currency transfers, to ensure that any market value is maximised.

We can offer award winning exchange rates & service, which surpass any of our competitors.

Please feel free to contact me if you would like to be kept up to date with all the latest market movements, or simply wish to compare our rates to those of your current provider.

I am available on 0044 1494 725 353 between 08.30-18.00 and just ask one for the team for Matthew. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Australian Dollar feels the pinch – Quiet end to the week for economic data (Daniel Wright)

Overnight the Australian Dollar has found life rather tough, seeing losses against most major currencies, following slightly less dovish comments from the RBNZ (Reserve Bank of New Zealand) in their latest interest rate decision and statement.

This news sent the New Zealand Dollar sharply higher, which in turn weakened the Australian Dollar, making it cheaper to buy.

For the coming week or so, Australian Dollar movements may be widely based on risk sentiment and economic news from around the world, this is due to the fact that their really is very little data of note that will move the markets before the end of the month.

Whilst this is the case we must remember that in the financial markets many surprises occur, and typically it will be just when everyone lets their guard down and assumes the rate will remain stable for a short period of time that something comes out to cause quite the opposite!

In my opinion I can still see a small period of Australian Dollar weakness coming up, this is due to the slow down we are seeing in China, attitude to risk diminishing around the globe and interest rates in the U.S slowly creeping up.

In times of global uncertainty and when investors have a slightly less riskier attitude you do tend to find that currencies such as the Australian Dollar, New Zealand Dollar and South African Rand will weaken, where as the perceived ‘safe’ options such as the U.S Dollar and Swiss Franc will gain value. As i’m sure many of our readers will know there are plenty of problems around the world at the moment both economic and political so we are currently in choppy waters for investors.

If you have a currency exchange to carry out involving the Australian Dollar into any major currency then I can help you, both with the timing of the exchange and getting the best rate when you come to book it out.

Should you feel I could be of use then feel free to contact me (Daniel Wright) the creator of this website on djw@currencies.co.uk with a description of your needs and I will be more than happy to help you personally.