Daily Archives: March 9, 2018

Pound Australian Dollar rates and could we see 1.80 this month? (Tom Holian)

The Pound has improved against the Australian Dollar during the course of this month and although we have seen some small drops recently GBPAUD exchange rates are close to the highest they have been in a very long time which is good news for anyone looking to buy Australian Dollars with Pounds.

Even though Sterling has remained under a lot of pressure against both the Euro and the US Dollar, Sterling has had a very strong run against both the New Zealand Dollar as well as the Australian Dollar.

In fact Australian GDP data showed a fall earlier this week which cause further Australian Dollar weakness with GBPAUD rates breaking as high as 1.79 on the Interbank level at one point.

With Donald Trump suggesting that he will be looking to increase tariffs on both steel and aluminium if he goes through with his plans this could cause a problem for the mining industry in Western Australia and therefore a longer term problem for the Australian dollar vs the Pound.

The US are now less than a fortnight away from the next Federal Reserve meeting and it is almost certain that they will be raising interest rates and this will be the first time that US interest rates will be higher than that available down under.

Therefore, I think later this month this could be the catalyst to send GBPAUD exchange rates towards 1.80.

On Monday Australia will be celebrating Labour Day so AUD exchange rates could remain quiet until later in the week when Chinese Retail Sales data as well as Industrial production data is announced.

China is such a large trading partner with Australia so this could cause a lot of movement for Australian Dollar towards the middle of this week.

For further information about what is happening with Australian Dollar exchange rates at the moment and if you need to make currency transfer then contact me directly for a free quote and I look forward to hearing form you.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

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

AUD Forecast – Trump’s Tax Tariffs Could Have Serious Knock on Effects for the Australian Economy (Matthew Vassallo)

The AUD has found plenty of support around 1.77 against Sterling this week but has struggled to make much of an impact below this threshold.

Despite the on-going concerns surrounding Brexit, the Pound has held its position against the AUD better than it has against many of the other major currencies.

News earlier this week that Australia’s Gross Domestic Product (GDP) growth figure had slipped to 2.4% from 2.8%, will have dented investor confidence in the region. Australia’s economy is heavily reliant on the export of their raw materials, so any slowdown in global growth inevitably has a negative knock on effect for their economy.

Moving forward and there will also be concerns over President Donald Trump’s proposed tax tariffs on imported Steel & Aluminium. This could have serious knock on effects for the global economy and could even threaten a recession in the longer-term.

This in turn would likely to cause investors to flee currencies like the AUD, which are considered a riskier asset in times of global uncertainty.

Whilst market sentiment around the UK economy is still being driven by sentiment surrounding Brexit and with negotiations remaining tedious, it is unlikely the Pound will find any major support under current conditions.

Due to uncertainty on both sides, it is no surprise that GBP/AUD rates have remained largely range bound over the past few weeks, with the markets seemingly waiting for the next key development.

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.