Daily Archives: October 19, 2017

Sterling loses further ground on the Aussie Dollar, will GBP/AUD fall back into the early 1.60’s? (Joseph Wright)

The Pound has fallen across the board of major currency pairs today, after some disappointing Retail Sales figures got the Pound off to a slow start.

The rate of inflation increasing to its highest level in 5-years along with wages struggling to keep up has been in the financial news recently, and applying pressure to the Pounds value.

The negative effects of the reducing purchasing power of the UK consumer is beginning to show, as today’s Retail Sales figures demonstrated that year-on-year sales in the UK retail sector are slowing, and on a monthly basis the figure for sales is now negative.

Many had hoped to see the Bank of England look at hiking interest rates in order to stem the issue, although hopes of a rate hike in early November have fallen this week after the BoE governor Mark Carney was quite dovish in his speech earlier this week.

Personally I think there could be a small hike in November but I don’t expect to see this push the GBP/AUD rate back above 1.70, as the pair have already fallen some distance since hitting last months highs when the rate hike was first discussed by the BoE.

Aside from the above issues I expect to see Brexit negotiations and how they’re unfolding continue to impact GBP rates across the board, and if you would like to be notified if there are any short term price changes for the Pound do feel free to register your interest with me.

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.

Australian Dollar makes gains overnight against most major currencies following positive unemployment data and data from China (Daniel Wright)

The Australian Dollar has made solid gains overnight against most major currencies, following positive unemployment figures released a few hours ago in Australia.

The main unemployment rate moved from 5.6% to 5.5% which was slightly better than expectations and showed a small improvement in the Australian jobs market.

On top of this a short while after we had Chinese Retail Sales and industrial production figures which were both slightly better than expectations too. Economic data from China can have a fairly large impact on the value of the Australian Dollar as Australia does rely on China for many of its exports so positive news from China generally gives the Australian Dollar a boost whilst negative data can lead to Australian Dollar weakness.

We have very little economic data left to come out from both Australia and China for the rest of the week so focus for the Australian Dollar will more likely be on global attitude to risk and any hints on interest rate change from the few members of the federal reserve that are due to speak this week in the U.S.

Next week heads will turn towards Australian inflation data, released on Wednesday morning in Australia or Tuesday late at night if you are following from the U.K.

It does appear that inflation is still outweighing wage growth in Australia, just like we are witnessing in the U.K too at present which is a slight concern for the economy and may be one of the reasons why the RBA are more than likely to hold off on any interest rate change in the coming months.

Personally I still feel that the Australian Dollar is a little stronger than it should be and that it may weaken off in the coming weeks but with economic data giving it a backbone this week then it may continue to gain over the next few days.

Here at Australian Dollar Forecast we do not only offer our readers regular, up to date market news but all of our writers also work for one of the top foreign exchange brokerages in the country. The brokerage has been in operation for over 18 years now and many of our writers have been here for the vast majority of that period so you know you are dealing with a well established company and a highly experienced trader too.

If you feel we may be able to help you exchange your currency for your business, or for a property purchase or sale then feel free to contact me directly on djw@currencies.co.uk and I will be happy to contact you personally. You may already have a broker that you have lined up for this transaction but if you are having to research the markets yourself and you have stumbled across this site doing so, then your broker isn’t doing a very good job as they should be getting the information for you!

Feel free to get in touch, even if it is for a quick quote to make sure you are getting the right price as a small difference can make a large change to the amount of money that your exchange costs you.