Daily Archives: March 8, 2018

GBPAUD remains range bound…

GBPAUD exchange rates have been range bound this week despite a huge amount of shifts and changes in market sentiments over the pound and Australian dollar. The main news was from the RBA (Reserve Bank of Australia) which has seen them remaining in a no-mans land in terms of their attitude to looking to raise or lower interest rates.

If there was to be any bias it would be towards the hiking of interest rates, this was potentially something on the cards in 2018 but actually we have seen it becoming more likely to happen in 2019. Economic condition are according to the RBA not warranting any hike, since the market was widely expecting this the Australian dollar has not reacted significantly.

The next big news will be overnight with the Chinese releasing a series of Import and Export data which will see us understanding the market much better. The Chinese data is very important for the future which will be closely monitored since China is one of the biggest markets Australia sells its raw materials into.

For more information on the upcoming news and events you can contact myself Jonathan Watson directly by emailing jmw@currencies.co.uk. For clients concerned with GBAUD exchanges many clients are tracking the 1.80 mark which we have so far been unable to hit. I do expect this could happen, it might well be in the next couple of weeks as we get some further important UK data.

If you need to buy or sell Australian dollars against any currency please feel free to get in touch to discuss further the market and your options.

Thank you for reading and I hope to hear from you soon.


Will GBP AUD Hit 1.80?

The Australian dollar has come under a wave of new pressure as a result of concerns of the possibility of future trade tariffs being imposed from US President Donald Trump. Whilst the commentary coming from the White House has softened slightly overnight by suggesting that tariffs would only affect certain countries the uncertainty is still there and this is having a negative impact on the Aussie. There is a possibility of a trade war which could be damaging for the commodity currencies in particular which include the Australian and New Zealand dollars. You only need to look at how the Canadian dollar has been hammered over these developments to realise that the Aussie could weaken further. Any changes or policy implementations are likely to see the Australian dollar weaken and a move to 1.80 credible.

Selling Australian dollars

Those clients looking to sell Australian dollars for pounds are currently seeing some weaker levels with rates closer to 1.80 rather than 1.70 for the GBP AUD pair. Any opportunities for selling dollars are likely to stem from developments in the Brexit negotiations which remains the single biggest driver for sterling exchange rates. The hot potato of the moment is whether or not financial services will be included in any future trade deal between Britain and the EU. So far and the response from the EU has been frosty with the French finance Minister Bruno Le Maire stating that there is little chance of a trade deal being included in the deal.

Whilst this uncertainty continues should mean some good opportunities for clients looking to sell Australian dollars. Any developments could see the pound weaken although I would be mindful that as talks move forward in the coming weeks the pound could start to rally if compromises between both sides are made. The pound remains weak against the majority of currencies as a result of Brexit and so clients may wish to consider moving sooner rather than later to take advantage of what are still attractive levels. My view is that it is only a matter of time before the pound rallies and potentially quite considerably. For assistance in trying to time your exchange the please get in contact.

For more information on the Australian dollar and how the markets movements are likely to impact on your own currency requirement then please feel free to email me at jll@currencies.co.uk