Daily Archives: November 7, 2017

GBP/AUD Forecast – RBA Keep Interest Rates on Hold (Matthew Vassallo)

The Pound found some much needed support during trading today, with news overnight confirming the Reserve Bank of Australia (RBA) had kept rates on hold.

This decision was expected and likely factored in by investors to the current market price but it was likely recent comments by RBA members, which has kept investor confidence in the AUD at a minimum.

They confirmed that the RBA were unlikely to raise rates until 2019, news which sapped investor confidence in the Australian economy.

GBP/AUD rates moved back above 1.72, hitting 1.7227 at today’s high.

This move was most welcome by those clients holding the Pound following last week’s slide, which came about after the Bank of England’s (BoE) interest rate decision and the subsequent statement by governor Mark Carney.

Despite the central bank raising rates for the first time in 10 years, it is likely that investors had almost fully factored in the 0.25% hike.

The reason for the Pound then dropped sharply, is a likely reaction to Carney’s subsequent statement. He remained fairly downbeat about the UK economy and emphasized the negative impact any further rate rises could have, whilst Brexit negotiations were on-going.

If you combine this with the negative perception already engulfing the UK at present, and the Pound was always likely to sustain a major upturn.

Therefore, even a relatively small spike, such as the one we have seen today should be considered a positive for those clients with a Sterling currency requirement. I do not believe that the Pound can sustain any aggressive increases towards 1.80 against the AUD, particularly in the short-term.

The UK’s economic outlook remains relatively bleak and with so many unanswered questions surrounding Brexit and which direction the UK economy will take following our on-going separation from the EU, are you prepared to risk further losses for perhaps only marginal gains?

If you have an upcoming GBP or AUD currency transfer to make you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

RBA leave interest rates on hold as expected (Daniel Wright)

This morning the RBA (Reserve Bank of Australia) announced that they would be leaving interest rates on hold at 1.5% which was exactly as the markets had originally expected.

The decision didn’t have a huge impact on the value of the Australian Dollar as it had been widely expected that rates will remain on hold for the coming months.

An interest rate hike is generally seen as positive for a currency and a cut in rates is seen as negative so interest rate movements can be key for a currencies strength. Even the mere mention or speculation of a hike or cut in interest rates can lead to exchange rates moving quite a lot, so any hints or change to the likelihood of a rate change may be of great importance if you have a pending exchange to carry out.

I still personally feel that the Australian Dollar may have a slightly rough patch coming up, although it does have a great backbone and constantly seems to fight back even in the toughest of times.

We have a huge amount of economic data due out in China tomorrow which will be key for where Australian Dollar exchange rates head for the rest of the week, along with Chinese inflation data on Thursday too. We have very little out from Australia over the course of the week that should impact the value of the Australian Dollar so focus will no doubt be on what the data from China brings.

Chinese data can have a large impact on the value of the Australian Dollar due to Australia’s large amount of exports to China so this data is important for anyone looking to buy or sell Australian Dollars.

If you have the need to buy or sell Australian Dollars in the coming days, weeks or months then it may be prudent to get in contact with me directly and I would be more than happy to help you.

Not only can we better rates from all major brokerages but we can also help you with the timing of your transfers, we have various contract types that we can offer from limit orders to forward contracts and can help tailor a game plan to suit you personally. Making international transfers is important and the difference from broker to broker can be thousands of Dollars. Feel free to contact me (Daniel Wright) by emailing djw@currencies.co.uk and I will be more than happy to get in touch with you personally.