Daily Archives: April 6, 2018

GBP/AUD – Is there the chance for further gains for the Pound? (Daniel Johnson)

Are we now witnessing new Buoyancy levels on GBP/AUD?

Sterling has advanced considerably against the Aussie of late due to several contributing factors. UK retail sales was impressive, figures sat at – 0.2% and were predicted to land at 0.4%. They came in at 0.8%. We also saw UK average wage growth move closer to parity with inflation which is a  sign of a very healthy economy.

There was already the strong possibility of an interest  rate hike from the Bank of England (BOE), but these date means it is almost a certainty.

It has also been confirmed the UK will have access to the single market during the Brexit transitional period  which will relieve a great number of UK firms.

On the back of this GBP/AUD went as high as 1.85, but quickly retracted. I am of the opinion this will be a new resistance point on GBP/AUD so if you are an AUD buyer and you have to move short term I would consider moving in the 1.84s.

The Aussie is losing its attraction to it’s investors due to the US now offering higher returns and future rate hikes. I am of the opinion the hike by the Federal Reserve however are already factored into current levels.

Be sure to keep an eye on Australia’s primary export, Iron Ore. china is the main purchaser and the current trade war with the US could well influence AUD value.

If you have a pending currency transfer let me know the details of your trade I will endeavour to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

Will the Pound improve against the Australian Dollar or be caught out by the recent bad weather?

The Pound has continued to remain strong against the Australian Dollar and although we have seen a small drop in the value of GBPAUD exchange rates I still think we could see further gains for the Pound in the long term.

The interest rate down under is now lower than that on offer in the US and this was one of the reasons for the Australian Dollar’s recent demise against the Pound.

If you’re a global investor and you’re offered a higher yield in the US, who are also showing strong signs of growth, why wouldn’t you move funds away from riskier commodity based currencies such as the AUD in favour of the USD?

The Reserve Bank of Australia has recently confirmed that interest rates will be staying the same for the time being meanwhile the Bank of England have demonstrated that they may be looking to increase interest rates in the UK in the near future.

The recent vote by the MPC was 7-2 in favour of keeping interest rates on hold and clearly there is an appetite for an interest rate increase.

UK Average Earnings have recently surpassed inflation levels and in my opinion I think this allows the central bank room to seriously consider raising rates and I think this could possibly happen next month which could give the Pound a further boost against the Australian Dollar.

On Tuesday we could see some potential movement for the Pound vs the Australian Dollar with the latest NIESR GDP estimate for the last three months. Owing to the recent bad weather in the UK I think this estimate could cause a lot of volatility so make sure you’re well prepared for the movement on GBPAUD rates.

Having worked for one of the UK’s longest established currency brokers for 15 years I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

Please send me an email with your particular requirement and I will come back to you with a detailed response.

I look forward to hearing from you

Tom Holian teh@currencies.co.uk