Daily Archives: January 4, 2018

Be wary of thinking the Australian Dollar will continue to strengthen (Daniel Johnson)

Australian Dollar gains strength due to strong commodity prices

The Australian Dollar has seen gains against the majority of major currency pairings of late, predominately due to a rise in commodity prices. Iron ore is Australia’s primary export and we have seen gains of late. There is a clear correlation between Australian dollar value and iron ore price, so it is always wise to keep an eye on iron ores value. This is due to a heavy reliance on the Chinese purchasing Australian iron ore. Chinese is dwindling , but it is still considered to be very healthy.

If I was an Australian Dollar seller, I would be tempted to take advantage of rates as they sit. If we take GBP/AUD for example, Sterling made gains on the Aussie to 1.79, but has since slid back to 1.72 following the lack of clarity on Brexit combined with commodity price. The fear for me regarding the Australian Dollar is the predicted rate rises in the United States.

The Australian Dollar is considered a reasonably safe currency to invest in with relatively high returns, investors are happy to keep there funds in AUD due to this. There has however been a recent rate hike in the US, bringing the US interest rate in line with Australia’s at 1.5%.  The Reserve Bank of Australia currently  have little justification to hike rates down under whereas in the US the Federal Reserve has stated it’s intention is to make as many as three rate hikes during 2018. With the chances of higher returns in a safe haven currency many investors with funds in the Aussie may well move to the green back. If you are selling the Australian Dollar in may be wise to take advantage of current levels.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to get the most for your money. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

Brief recovery for the Australian Dollar but will it last? (Tom Holian)

The Pound has come under a little bit of pressure to buy Australian Dollars recently as the value of iron ore has been rising in recent weeks.

The commodity is a big revenue generator for Australia and when this improves in price this also tends to strengthen the Australian Dollar against the Pound.

Tomorrow morning brings with it the latest set of both Australian Import and Export data as well as Trade Balance figures for November.

If the data is positive I think we could see a strong start for the AUD vs GBP on early Friday morning so if you’re considering buying Australian Dollars in the short term then keep a close eye out on the market.

The Australian Dollar can also be heavily influenced by what happens in the US and with the world’s leading economy set to release unemployment data in the form of US Non-Farm Payroll data on Friday afternoon this could have a big impact on GBPAUD exchange rates.

The US raised interest rates three times during 2017 and with potentially more to come this year they will pass the interest rate level set by the RBA which could cause global investors to sell the Australian Dollar and therefore cause weakness for the Australian Dollar in the longer term against the Pound.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.