Daily Archives: March 16, 2018

GBPAUD hits 1.80!

The pound to Australian dollar exchange rate is currently rising and has hit the magical 1.80 level this afternoon. This is presenting some of the best fresh opportunities to buy AUD with sterling since the Referendum. This is a very important psychological level of resistance and now this is breached we might struggle to get back below if certain conditions are met.

These conditions stem from a technical analysis of the market that states, generally once a rate has broken a certain level and can remain above it consistently, it will then be more likely to remain above that price. The belief on the rates is that this needs to be sustained over a few sessions for it to be seen as a consistent move. Much will now depend on sentiments towards the ongoing events which have of course driven this shift on the exchange rate.

I feel the pound will now continue to rise against the Australian dollar, this move has been widely expected and appears to be the path of least resistance. With little sign the RBA (Reserve Bank of Australia) will be raising their base rate anytime soon, the Aussie will in my opinion remain on the weaker side.

Sterling is rising on increasing confidence over what lies ahead on Brexit, next week’s EU summit will be a major driver on the GBPAUD pair. Important too will be the latest news from the US Federal Reserve Bank on Wednesday next week, as they look to raise interest rates. A stronger US dollar has seen a weaker Aussie in recent months and years, this could be a very important week ahead for GBPAUD rates!

If you have any Australian dollar transfers buying or selling then making plans around important events is the best way to maximise your transfers. For more information free of charge and at no obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you.

AUD Weakness after Hints on US Trade Policy (James Lovick)

The Australian dollar came under pressure in afternoon trade yesterday taking considerable losses against most of the major currencies. Rates for GBP AUD have climbed higher breaking over 1.79 for the pair which has created a good opportunity for those clients looking to buy Australian dollars with pounds.

The weakness in the Aussie has stemmed from events in the US rather than negative data down under. The new economic adviser to US President Donald Trump has signalled he is in favour of a strong US dollar whilst also signalling that he is preparing for another round of tariffs which will target Chinese exports.

The prospect of a trade war appears to be looking more likely on the back of these comments and the commodity currencies including the Australian dollar are likely to be impacted upon badly. The Canadian dollar in particular has come under substantial pressure on the back of protectionist policies and the Aussie may have further to fall. Clients looking to buy Australian dollars in these coming weeks could see some even better opportunities to purchase with a move higher to 1.80 for the GBP AUD pair looking likely. Whilst the steel and aluminium tariffs imposed so far have had little real market reaction any other measures could see the Australian dollar come under renewed pressure.

The dollar had until recently been supported following upbeat trade data from China which is normally seen as a vote of confidence for the Aussie but the comments from US economic adviser Larry Kudlow. Australia’s largest export market is China and so when the Chinese economy is performing well it is generally a good sign that global economic growth is being seen and Australian exports are on the up. Any perceived slowdown in economic growth is likely to result in a rocky ride for the Aussie going forward.

For more information about the Australian dollar and how to try and make the most of any opportunities for buying or selling Australian dollars then please get in touch with me at jll@currencies.co.uk