Daily Archives: February 1, 2018

Could we be headed for further AUD weakness? (Daniel Johnson)

RBA to keep interest rates on hold

Things do not bode well for the Australian Dollar at present. The Reserve Bank of Australia (RBA) have recently indicated that interest rates will be kept on hold for the foreseeable future. It was following Australian inflation data in the final quarter of 2017. There was a slight increase, but it did not meet the expectation of 2%. Some could deem this as positive, but the problem is due to the inconsistencies regionally.

Canberra, Melbourne and Sydney saw inflation hit over 2.1%, but if you look at Perth an area heavily involved in commodity exports inflation is struggling at 0.8%. This is definitely a cause for concern which is the reasoning behind keeping interest rates on hold.

The housing bubble created by those flocking to high wage growth areas is also a problem. The housing market remains strong in the east but is considerably down in the west according to the latest CPI figures.

With Australia highly dependent on raw material export to China it is important to keep an eye on Chinese data. We recently saw a fall in manufacturing data which has also caused Australian Dollar weakness.


GBP/AUD now sits above 1.75 which has been a resistance point of late. With the uncertainty surrounding Brexit talks if I was selling Sterling I would consider taking advantage of current levels. The last time we saw GBP/AUD near 1.80 there was a quick retraction possibly due to profit taking.

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 maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson


Pound rises against the Australian Dollar after lower than expected Australian Inflation Data (Tom Holian)

The Pound has once again charged in an upwards direction vs the Australian Dollar breaking past 1.78 overnight.

Australian Inflation data for the final quarter of last year came out lower than expected and although the figure rose to 1.9% it came in below expected figure of 2%.

This means that the likelihood of the Reserve Bank of Australia raising interest rates at any point in the near future is severely reduced and this is why we have seen the Australian Dollar weaken against Sterling.

The CPI report also showed huge inconsistencies across the country with the cities in the east all above 2% but with Perth in the west showing a level of just 0.8% highlighting the disparity between the regions which makes things more difficult for the RBA to manage the economy effectively.

The same report also highlighted differences in the housing market from one region to another and this is why the Australia Dollar has weakened as confidence is likely to also fall down under which is good news for anyone looking to buy Australian Dollars with Sterling at the moment.

Chinese data has also been rather mixed recently and as China is the largest trading partner with Australia any lower than expected news can often have a negative impact on the value of the Australian Dollar.

We end the week with the latest Producer Price Index data from Australia and anything different could influence the rate to convert Australian Dollars so make sure you’re well prepared.

If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars compared to using your own bank then feel free to contact me directly for a free quote and I look forward to hearing from you.

Having worked for one of the UK’s leading currency brokers for 15 years I am confident of being able to help you.

Email me directly Tom Holian teh@currencies.co.uk