Daily Archives: March 28, 2018

Pound continues to make gains vs the Australian Dollar (Tom Holian)

I have been predicting in my last few articles that the Pound would break through 1.80 during the course of this month and continue to rise against the Australian Dollar which has shown signs of a real struggle during March.

We are now at the highest level to buy Australian Dollars with Pounds since the the referendum during June 2016 which saw the Pound collapse against the Australian Dollar after the British public voted to leave the European Union.

Although the Pound has been supported by better news on the Brexit front including an agreement on the transitional deal it appears to me is that it is more likely to be overall weakness for the Australian Dollar which has seen GBPAUD exchange rates move to these recent highs creating some excellent opportunities to buy Australian Dollars with Pounds.

There are a number of reasons why the AUD has weakened but mainly due to what is happening in the US during the course of this month. At the moment the Trump administration has put in place a number of different tariffs on Chinese goods coming into the US and as China is Australia’s largest trading partner any problems will often result in Australian Dollar weakness. If the trade wars ramp up this could cause further problems for the Australian Dollar so if your’e considering buying Pounds it may be worth organising this in the near future.

The stock market down under has also fallen since the start of the week as the US is also proposing a crackdown in Chinese investment in tech firms in the US.

With the Reserve Bank of Australia due to meet early next week I think the tone will suggest that any interest rate hikes may be a long time coming so this could provide a further boost for GBPAUD exchange rates.

Having worked in the foreign exchange industry since 2003 with my experience I am confident of being able to offer you both bank beating exchange rates and also help you with the timing of your transfer of currency.

If you would like further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

AUD Forecast – Concerns Over Global Trade Continue to Weigh Heavily on the AUD (Matthew Vassallo)

The AUD has lost some ground against Sterling overnight, with the pair trading 1.85 during Wednesday morning’s trading.

The AUD has come under pressure lately, having found plenty of support around and below 1.80 for long periods.

The Pound itself has had a very positive week following a strong run of UK economic data. Investor confidence in the Pound soared as UK Unemployment figures fell, Retail Sales figures exceeded expectation and there was even a nod from the Bank of England (BoE) that they may look to hike interest rates over the coming months.

This positive feeling was cemented as reports regarding a Brexit transitional deal surfaced. These reports were later confirmed, with the UK & EUR all but agreeing the terms of the deal, which included access for the UK to the single market & customs union during the two year period.

This positive sentiment helped support Sterling’s rise against the AUD, which itself has come under increasing pressure of late in line with a slowdown in global growth.

Investors have been pulling their funds away from riskier assets such as the AUD, with fears that President Donald Trump’s imposed tariffs on imported goods good have a serious knock on effect for the global economy. As regular readers will know the Australia relies heavily on sustainable global growth to boost its export driven economy and any slowdown inevitably has a negative knock on effects for the AUD.

With US/China trade wars also impacting investors risk appetite, particularly as China demand for Australian goods & materials is so essential to the Australian economy, the AUD may struggle to make any sustained impact back to or below 1.80 against Sterling in the short-term.

Whilst Brexit fears have not completely subsided, with many questions regarding future trade relationship’s still to be answered, I would be tempted to protect any AUD currency positions and avoid the risk of further downturns.

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 winning 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.