Daily Archives: July 6, 2017

How the Bank of England and Reserve Bank of Australia could impact GBPAUD exchange rates (Dayle Littlejohn)

For people that are reading this website for the first time as they need to purchase a substantial amount of Australian dollars for a business related matter or a property purchase it’s is important to understand that interest rates have a major impact on the currencies value.

Earlier this week the Reserve Bank of Australia’s minutes confirmed the RBA are unlikely to hike rates anytime soon. This was a surprise as the Governor of the RBA gave a hawkish press conference last week and many economists had been speculating that Australia could follow in the US footsteps.

It was important to note the RBA did confirm it is unlikely rates would be cut further as, more liquidity in the housing market would have a detrimental impact on the Australian dollar longer term.

The message the RBA gave earlier this week is slightly different to the Bank of England’s. Inflation levels have risen above the BoE 2% target and members of the Bank of England are now calling for an interest rate hike. Nothing has been confirmed however speculation is rising and a hike looks likely towards the end of the year or early 2018.

Therefore looking ahead the pound could trend higher against the Australian dollar if we only looked at interest rates, however there are many factors that influence exchange rates. For example Brexit negotiations are on going and if these negotiations grind to a halt which I think is likely we could see substantial falls in the pounds value.

When converting GBPAUD exchange rates it is important to understand political events are having more of an impact than economic data therefore it is very difficult to predict the future. My job is to outline the options to clients with the potential upcoming economic events, and the client makes the decision of when to convert.

If you are buying or selling Australian dollars and would like to know your options and have access to fantastic exchange rates feel free to email me on

If you are trading GBPAUD in the upcoming weeks, months or years and want to know your options whilst saving money feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company drl@currencies.co.uk.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **

 

Australian Dollar gains strength after solid trade data overnight (Daniel Wright)

The Australian Dollar gained ground against most major currencies during the Asian session due to seeing Australia’s trade balance rise more than expected during May.

Exports were up, which for a export driven country is seen as a real positive for the Australian economy and indeed the Australian Dollar. We only really saw small gains for the Australian Dollar off the back of this, but it was welcomed by those with Australian Dollars to sell in the near future, after seeing AUD exchange rates drop off earlier in the week following the RBA interest rate decision and monetary policy statement.

The RBA had set a more dovish tone than had been expected, both on the economy going forward and on future fiscal policy changes, this led to Australian Dollar weakness immediately after the release and a little further weakness during trading yesterday.

Rest of the week for AUD exchange rates?

Tomorrow we have a little economic data out from China and also Non-Farm Payroll data out from the U.S.

Chinese data can impact the Australian Dollar quite heavily due to the volume exported over there and the Non-Farm data can affect all major currencies as it will alter global attitude to risk. Currently, the Australian Dollar is perceived as a riskier currency so any slight alterations in risk sentiment worldwide can impact Australian Dollar exchange rates.

With so much going on in the market at present, it is extremely important that if you have a currency exchange to carry out in the coming days, weeks or months then it is imperative that you have an experienced and proactive currency broker on your side. Here at Australian Dollar Forecast we can not only help you with up to the minute market data but we can also work with you to help you time your transfer and to get the best rate when you do carry it out.

Feel free to contact me (Daniel Wright) the creator of this website should you wish to receive more information on our services and I will be more than happy to get back to you as soon as I can. You can email me on djw@currencies.co.uk and I look forward to speaking with you.