Daily Archives: November 15, 2017

Australian wage growth disapoints

In the early hours of the morning Australia released their latest wage growth numbers for the last quarter, and the Australian dollar lost value as the numbers disappointed.  This release has the potential to now influence the next round of inflation and consumer spending which again could cause problems for clients holding onto Australian dollars.

The US have also released important data today in the form of Consumer Price index also known as inflation. The inflation numbers rose to 1.8% from 1.7% and I believe this is the last nail in the coffin and the Federal Reserve will hike interest rates on December 13th.

In recent years currency speculators appear to bounce between the Australian dollar and US dollar, as the Australian dollar returns high interest on investments and the US dollar is a safe haven currency.  If the Federal Reserve raise interest rates US and Australian interest rates will both be 1.5% and I therefore expect to see a major sell off of Australian dollars to buy US dollars.

Therefore clients buying the Australian dollars may receive improved rates in the months to come, where as Australian dollar sellers may wish to buy their currency sooner rather than later. 

If you need to buy or sell Australian dollars and would like to save as much money as possible, feel free to email me with your requirements and I will respond with the process of using our company drl@currencies.co.uk. As a company we pride ourselves in the ability to get you a better exchange rate than your current currency provider or your bank. In addition we can outline your options and the potential future events, which will impact your exchange rate. This will help you to make informed and educated decisions.

 

6 month high to buy Australian dollars with pounds!

Overnight disappointing wage growth data has seen the Australian dollar lower and taken it to a 6 month low against the pound. This is presenting the best time in 6 months to buy Australian dollars with pounds, some good news for Australian buyers. Overall the outlook for sterling remains very shaky but we could potentially see some improvements in the coming weeks if we get some clarity on the UK’s Brexit position.

If we look at the state of the pound and its more recent performance against the Australian dollar it has mainly been subject to the whims of the Brexit which has only seen the market lower. If you have a transfer to make in the coming weeks then I would suggest you look to capitalise on this improvement or to certainly be making some plans around these latest developments.

Much has been made of the status of the pound and growing concerns that the UK will ultimately raise interest rates further down the line, this has all supported the pound but sentiments can very quickly change! There is now also a belief that the UK would also get a good deal from the Brexit, personally I would be surprised to see this happen but we will have to see how things develop.

If you are looking to buy or sell the pound against the Australian dollar then making some plans in advance is a crucial part of maximising the transaction, understanding the future events that would drive exchange rates will ultimately be crucial to getting the most for your money. As well as getting the very best rates of exchange we also help with forecasting and alerts of certain market moving events and exchange rates.

For more information please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you.