Daily Archives: April 4, 2018

Buying Australian Dollars? GBP AUD Supported (James Lovick)

The Australian dollar remains under a fair amount of pressure amidst global economic and political changes. Rates for GBP AUD remain over 1.80 for the pair although a move higher to 1.90 may prove difficult in the short term. Those clients looking to buy Australian dollars with pounds may wish to consider locking in at today’s rates and take advantage of these higher levels which have only recently become available.

The pound has been boosted following slightly better manufacturing numbers released yesterday as per the Purchasing Managers Index. Tomorrows services sector data for the UK could prove particularly volatile for the pound and a strong number could see a rally in the GBP AUD pair.

The Australian dollar could also come under added pressure in the short term as a result of some of the trade barriers which are being erected by China and the US at present. If trade barriers and tariffs continue to go up then the Australian dollar could be one to suffer although the markets are hopeful this behaviour will not turn into a fully blown trade war.

Those clients who are looking to sell Australian dollars for pounds should continue to see more volatility in the coming weeks and months as result of the ongoing Brexit negotiations between Britain and the EU. One of the reasons the pound has rallied is due to the fact that the second round of negotiations has just been completed with talks now progressing on to future trade. Once the thorny issues of the Irish border and also whether financial services can be included in and trade deal have been resolved this could prove beneficial for sterling exchange rates.

For more information on the Australian dollar and how to maximise on the rates of exchange when there is sudden movement then please feel free to get in touch with me at jll@currencies.co.uk

Aussie Dollar boosted after positive Retail Sales data, where to next for AUD exchange rates? (Joseph Wright)

The Aussie Dollar has received a boost overnight after some positive economic data.

After disappointing in recent months Australian Retail Sales down under have rebounded and impressed during February. Retail Sales rose by 0.6% during the month after slumping in January and December.

Improving sales along with inflation are increasing the chances of a rate hike from the RBA, up from its record lows which is where interest rates currently sit.

The Pound has reached new annual highs against the Aussie Dollar in recent weeks after the Brexit transitional agreement has been arranged between the UK-EU negotiators. This positive news for the UK benefited the Pound along with increasing likelihood of a rate hike in May.

Now that the US Dollar offers a higher return than the Aussie Dollar, it’s not surprising to see the Aussie Dollar lose value as investors move deposits from AUD into the USD. Before the recent rate hikes from the FED Reserve bank in the US AUD had offered one of the highest returns in the developed world, but now that AUD is losing this competitive edge we’re seeing the currency lose value.

Early tomorrow morning there will be the release of Australian Import and Export data along with Trade Balance figures. If you’re planning a currency transfer involving AUD it can be worth setting up target rates in case the best trade levels are available in the early hours when we’re not in the office.

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.