Daily Archives: April 11, 2018

AUD Forecast – Global Trade Wars Likely to Handicap any Advancements for the AUD (Matthew Vassallo)

The AUD has found some support against Sterling during Wednesday’s trading, despite on-going concerns around the global markets and President Donald Trump’s prospective trade tariffs.

GBP/AUD hit 1.8356, before the AUD fought back below 1.83 by the close of European trading.

The Pound itself has found support of late following a spike in investor confidence. This upturn in fortunes has come in line with some a strong run of UK economic data and some positive developments in Brexit talks.

The UK & EUR have agreed terms on a transitional period between the original two year timeline, which will allow for further negotiations to take place regarding the UK’s future trade relationship with our closet neighbours, amongst other key facets of the separation.

This has helped the Pound to support itself around its current levels, which could mean that the AUD will struggle to make any impact back below 1.80 over the coming days.

We also need to consider that all commodity based currencies such as the AUD have come under pressure, since President Trump’s imposed traded tariffs on China, which has started to put a strain on the global markets.

The Australian economy relies heavily on its exports to proper, so any slowdown in this sector caused by any global trade wars, is also likely to put pressure on the AUD.

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.

Will GBPAUD rates rise or fall in April?

The pound to Australian dollar exchange rates has been improving overnight as the Australian dollar suffers regarding some slightly worse than expected Chinese economic data. The Aussie has been on the backfoot in recent weeks as investors lose faith in the currency and find better returns elsewhere.

If you have a transfer to make in the future buying Australian dollars then the outlook is looking better as the expectation for the Aussie is that it will continue to weaken in the future. Markets are bracing themselves for a continuing deterioration of the Australian dollar as the US dollar becomes a more attractive currency to hold.

US interest rates rate have been rising which is making it very attractive to hold, investors would rather hold the US dollar than the Aussie at the moment as it is seen as a safer and less risky currency to hold. The Reserve Bank of Australia (RBA) are in a process of holding off making any decisions on interest rates which has seen the currency weaker. The UK too are in a process of raising interest rates which is leading to much-improved levels for the pound.

Essentially the pound and the US dollar are being made to be more attractive to hold than the Australian dollar which has seen the GBPAUD rates rising. They may well improve further in the future, we will have to wait and see exactly what happens with various factors globally, not just concerns in the UK and Australia.

If you have a transfer to make in the future understanding the market and all of your options in advance is key to getting the best rates of exchange. Part of our service is to assist clients with the timing and execution of any currency exchanges, please contact me personally if there is anything you wish to run through or discuss in the future.

Thank you for reading and please email jmw@currencies.co.uk to discuss further.