Daily Archives: April 19, 2018

Could the Pound continue its recent strong run vs the Australian Dollar?

Although the Pound dipped yesterday vs the Australian Dollar after UK inflation came out slightly lower than expected the Pound has risen once against vs the AUD during today’s trading session.

UK inflation is a key factor in determining when the Bank of England may look at raising interest rates and the chances are very high that a rate hike may occur when the central bank meet again on 10th May.

Indeed, according to some reports the chances are as high as 85% of an interest rate hike.

The Pound has made a lot of gains vs the Australian Dollar over the last few months and although we saw a brief fall earlier this week I think the negative movement will be relatively short lived.

With the US having increased rates recently the US interest rates now have a higher yield than having money in Australia and this is one of the reasons why the Australian Dollar has weakened recently particularly vs the Pound.

On Tuesday, Australia releases its latest inflation data and with the RBA having announced recently that interest rates are likely to remain on hold for the foreseeable future the data release could cause a lot of movement for GBPAUD exchange rates.

On Wednesday Australia celebrates ANZAC day so expect the markets to remain quite midweek so if you’re happy with rates are on Wednesday that may be the day to make your move.

If you would like more information about buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you.

Having worked in the foreign exchange industry since 2003 I am confident of being able to save you money so feel free to send me an email directly with an outline of your particular requirement.

Tom Holian teh@currencies.co.uk

 

 

AUD Forecast – AUD Fights Back After Recent Losses (Matthew Vassallo)

Sterling came under pressure against the AUD yesterday, following the release of the latest UK inflation data.

GBP/AUD rates have fallen back towards 1.82, a dip of almost 4 cents from last week’s high.

Inflation fell to 2.5%, which was under the markets predicted market figure of 2.7%. Whilst this could be viewed as a positive in the sense that it is creeping back towards the government’s target level of 2%, it has also dampened expectations of a prospective interest rate hike by the Bank of England (BoE).

This potential rate hike had most likely  been factored in to Sterling’s value, at least to some extent by investors, as such yesterday’s data has dampened the markets expectation and as investors have sold off their Sterling positions.

Looking at the AUD and it had started to find support against the Pound around 1.85, with the realignment welcomed by any clients looking to sell AUD.

One of the main reasons the AUD has struggled of late, is due to pressure on the global markets. Generally, when there is an upturn in global growth currencies such as the AUD will prosper as investors look towards riskier assets, with generally higher interest returns. When the global markets are under pressure, investors will move their funds away from these currencies and back into safer havens such as the USD or CHF.

President Donald Trump’s recent trade tariffs are  putting a huge strain on commodity based currencies such as the AUD, which is why clients holding AUD may wish to take advantage of the current spike and remove any market risk.

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.