Daily Archives: January 5, 2018

Aussie Dollar bull run pauses as data disappoints, but will AUD/GBP continue to climb in the long run? (Joseph Wright)

The strong upward trend for the Aussie Dollar paused today as financial markets were disappointed with data released down under.

The Pound to Aussie Dollar rate climbed back up to 1.73 today after losing value in recent weeks as the Aussie has been strengthening, but the GBP/AUD rate still has a long was to go to recover back to the high 1.70’s it was trading at just a short while ago.

AUD fell in value today though after Australia’s trade balance figures fell short of forecasts and into a deficit, meaning that the Aussie economy isn’t quite as strong as many had expected.

Recently the Aussie Dollar had been strengthening off the back of substantial gains in the value of iron ore, which is a key export of Australia’s.

Moving forward I expect the par to continue to be driven by both the performance of Australia’s economy coupled with Brexit related updates. Sentiment surrounding how smoothly the Brexit will take place and how the UK economy will fair during and after the Brexit have continued to have perhaps more of an impact on the Pound’s value than the performance of the UK economy, especially when we consider that the UK economy outperformed almost every economists predictions yet GBP is still fairly weak.

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.

AUD Forecast – Australian Economy Set for Further Growth (Matthew Vassallo)

GBP/AUD rates spiked slightly overnight, with the Pound hitting 1.7307 at the high.

Despite this improvement the AUD has found plenty of support around the 1.73 threshold over recent days and it may be time for those clients holding GBP to take advantage of the rates, whilst the pair continues to trade above 1.70.

Early year financial reports have indicated that the Australian economy is set to continue to grow in 2018. If this prediction comes to fruition it will be Australia’s 27th year of uninterrupted growth.

This in itself is a quite staggering statistic, especially when you consider there have been at least three major global recessions during this period.

Whilst the Australian economy is of course not impenetrable, it is clear they are benefiting from high levels of skilled immigration and a booming mining industry, which helps to support their continued growth.

Problems have been cited in the past at how the Australian economy is over reliant on this sector but with such an abundance of raw materials (in particular iron ore) and a high global demand for their produce, it seems as though for those concerns are relatively unfounded.

The rising house prices in Sydney & Melbourne are becoming unsustainable and more importantly unaffordable for the majority of residents and this could impact the economy and ultimately the AUD in the coming months.

However, it is far more likely the markets will react negatively to Brexit fears and this is likely to put more pressure on Sterling.

Market perception around the UK economy remains extremely fragile and for this reason I would be tempted to remove any risk and secure my GBP/AUD currency positions ahead of phase two of Brexit talks.

If you have an upcoming 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.