Daily Archives: July 19, 2017

Could the Pound fall even further against the Australian Dollar? (Tom Holian)

Sterling has continued to struggle vs the Australian Dollar this week after the comments made by the Reserve Bank of Australia which suggested that an interest rate hike may be coming sooner than some may expect.

Growth figures in China which is the world’s second largest economy and the largest trading partner with Australia have also been very good this week which has in turn led to Australian Dollar strength vs the Pound sending exchange rates below 1.64 for the first time in many weeks.

We have the release of Australian Unemployment data due out overnight and in my opinion any further good news down under could send the Pound vs Australian Dollar rates down even further.

My next expectation for rates is towards 1.60 rather than 1.70 so if you’re thinking about selling Australian Dollars soon then keep a close eye out for what happens to the GBPAUD rate tomorrow.

Tomorrow morning also brings with it UK Retail Sales which owing to the uncertainty caused by Brexit could see a lower than expected figure and if this happens I expect further Australian Dollar strength vs the Pound.

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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

Australian Dollar continues to make gains – Will this continue? (Daniel Wright)

We have seen the Australian Dollar have a fantastic week against all major currencies following on from both positive growth figures in China and extremely hawkish comments from the RBA (Reserve Bank of Australia) that they would be more than happy to see the cash rate in Australia make its way up to 3.5%.

Any interest rate change or even just the hint of it happening can move the value of a currency, and considering that the RBA have suggested a number of hikes with these comments we have seen the Australian Dollar soar from strength to strength. When an interest rate is raised it does make that currency more attractive to investors and with the rule of supply and demand if more people are interested in buying Australian Dollars then the price will rise.

Tomorrow morning (or overnight tonight for our readers in the U.K) we have Australian unemployment figures and this has the potential to buck the trend. Expectations are for unemployment to have increased from 5.5% to 5.6% an d should this be true then this may buck the trend for the time being.

Personally  I feel this is a prime opportunity at present to sell Australian Dollars as I still do not fully believe the Australian economy is such great shape that the RBA are hinting that it is, also, although China has recently shown good data I still feel there are plenty of issues still to resolve with the huge level of borrowing happening over there.

If you have Australian Dollars to sell or indeed buy then you need to have a proactive and experienced currency broker on your side in turbulent times such as these. If you feel I could be beneficial to you then I would be more than happy to help you. You can contact me (Daniel Wright) on djw@currencies.co.uk or by calling 0044 1494 725353 and asking for me and I will be more than happy to explain the process to you and help you put together a plan of action.