Daily Archives: May 30, 2018

Little reason for optimism for AUD buyers (Daniel Johnson)

GBP/AUD –  Sterling has lost significant ground against he Aussie of late. The buoyancy levels of 1.80-1.85 are gone. GBP/AUD currently sits in the 1.75’s.

This is predominantly due to Sterling weakness rather than AUD strength. There is little reason to be optimistic at present for Aussie buyers. The Brexit situation is likely to be drawn out and problematic, with votes on areas of the deal having to be passed back and forth between the House of Commons and the House of Lords for approval. Throw into the mix that many of those involved in negotiations have ulterior motives, seeking to fulfil there own agendas and Sterling could remain weak for the foreseeable future.

Economic data has also been appalling from the UK, particularly GDP which came in at 0.1%, the worst data release on GDP for over five years. The proposed interest rate hike from Bank of England (BOE) in May did not occur and I would be surprised to see one this year.

Australia is heavily reliant on China buying it’s raw materials, in particular iron ore and the US threatening to impose huge tariffs has the potential to slow Chinese growth which in turn will hit the Australian economy. China has agreed to purchase more than USD 200bn in goods and services from the US which has put a hold on the tariffs, the Aussie benefited as a result.

Current trading levels are poor for Aussie buyers, but it could get worse. I can appreciate the reluctance to trade due to the psychological aspect of trading at current levels when it was 1.84 only a short time ago, but believe me there is very little justification to get to those levels again in current market conditions.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

 

 

Australian Dollar still open to risk sell off – Italy key at present and Chinese data rounds off the week

Italian politics have been one of the surprise movers for Australian Dollar exchange rates so far this week, with news of a breakdown in talks to form a Government coming out earlier in the week this has led to a rise in political instability which can impact investors and speculators attitude to risk.

With the Australian Dollar being deemed as a ‘riskier’ currency it is open to the elements of global political and economic issues, so situations like the one in Italy at present or even the on-going situation between Donald Trump and North Korea can have quite an impact on the value of the currency.

In times of uncertainty the Australian Dollar tends to weaken and when matters are settled you can see the Australian Dollar get a little stronger.

As regular readers  of the site will be aware it does not look like we will be seeing a rise in interest rates for Australia in the coming months which may keep the Australian Dollar out of fashion for a little while, especially when you note that the Federal Reserve over in the U.S are consistently raising rates and have been for a while now.

An interest rate hike is generally seen as a positive for a currency as it makes that currency more attractive to investors and a cut in interest rates can been seen as negative, so with the action seen from the U.S over the last year or so we are witnessing a flurry of money out of the Australian Dollar and into the U.S Dollar which is perceived as a safer currency and now offers a better return as well.

We have minimal economic data out for Australia this week but we do have Chinese manufacturing tomorrow and Friday which may also impact the Australian Dollar as the week nears an end.

If you have a currency exchange to carry out in the coming days, weeks or even months ahead and you would like my assistance then I would be more than happy to help you personally. Not only can we better rates of other brokerages, well known apps or online platforms but we go the extra mile and offer assistance with both the timing of your transfer and getting the money where it needs to be safely and securely.

Feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to get back to you with further information on our services.