Daily Archives: March 15, 2018

Predictions of a higher GBP/AUD rate mount as Brexit transitional deal hopes grow (Joseph Wright)

The Pound to Australian Dollar exchange rate climbed during today’s trading session, with the pair now trading almost at the very top of the current trend.

The mid-market level for the pair hasn’t breached 1.80 in some time but the pair are currently trading in the 1.78’s, meaning that for those planning on making a GBP to AUD transfer are looking at attractive levels considering recent trading levels. I would add that the lower end of the trend is 1.60 so hopefully you can see my reasoning as to why the current levels are around the top of the market.

There are hopes that the Pound will climb further, and this week the Brexit Secretary, David Davis said that the UK ‘can live with’ a shorter transitional period which has boosted the Pound’s value along with the likelihood of UK interest rates climbing sooner than many had expected.

Analysts at Lloyd’s Bank have recently upgraded their forecasts for the Pound to Aussie Dollar rate this year. They had previously expected to see the pair trade at 1.72 at the inter-bank level although the changing tones from the Bank of England and the Reserve Bank of Australia has changed their minds, with them upgrading their views on the Pound’s potential.

There isn’t any major economic data coming out of the UK or Australia this week, so I expect the pair to be driven by politics for the remainder of the week.

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.

Key factors impacting Australian dollar exchange rates this week

So far its been a varied week for the Australian dollar against sterling and the US dollar, and therefore there has been opportunity for people buying Australian dollars and selling. When the market is up and down like it is at the moment, a contract that we offer is a limit order which allows clients to set a rate and if we can buy at that rate our computer systems do it for you. If you are buying or selling Australian dollars and want to find out more my direct email is drl@currencies.co.uk.

Below are a few reasons to why the Australian dollar has faced a varied week so far.  

US President Donald Trump and ‘trade wars’ is continuing to put pressure on the currency market and investors are retreating to assets they see as safe, therefore we are seeing unusual movements. At times we have seen investor flows out of the US dollar and into the Australian dollar, which isn’t the ‘norm’ however investors are heading to the Aussies for high returns of interest.

China released their latest industrial output numbers on Wednesday which impressed and many forecasters are suggesting a slight rise in commodity prices due to the demand from China in the upcoming months. This gave the Australian dollar a boost.

Over in the UK, the Chancellor of the Chequer Philip Hammond confirmed growth forecasts had been increased from 1.4% to 1.5% and the deficit predictions were far hawkish than at the last budget. No surprises this caused the pound to make gains against the Australian dollar.

If you are Australian dollars this week, month or year I would recommend emailing me with the the reason for the transfer (company goods, property purchase) and your timescales and I will response with the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage, I would strongly recommend you compare rates as I am confident I will be able to offer you additional savings with your transfer. All you need to do is email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **