Daily Archives: June 8, 2018

Important news to move Australian dollar exchange rates!

The Australian dollar has been a stronger contender on exchange rates lately as investors back the Australian dollar to potentially improve in the future. This is all owing to the improved expectations we have of late that the Chinese economy will improve further and the global economy is not as badly affected by the Trade Wars.

The Trade Wars and potential future trading activity of the global economy is a big driver on Australian dollar exchange rates, if you are looking for improvements for buying or selling the Australian dollar, keeping abreast of the latest developments is key to maximising your overall position. Australian unemployment data next week could be a big driver as attitudes to the economy and the labour market are vital to shifts in the likelihood of the RBA (Reserve Bank Australia) to raise interest rates in the future.

If you have a transfer to make in the future then understanding the market and all of your options in advance is highly recommended to help minimise the inherent uncertainty of just where levels could potentially go. On GBPAUD exchange rates we could easily see the rate rise to 1.80 if better UK news and worse information on the Aussie comes into play.

Next week is also crucial as we have the latest US interest rate decision where the market is anticipating further information from the US Federal Reserve on interest rate expectations. This could see the US dollar rise which would weaken the Aussie, their relationship is quite closely linked since both now have similar interest rates but investors might prefer to hold the US dollar as it is seen as a more stable and reliable currency.

If you have a transfer to consider in the future, understanding the market and all of your options in advance is key, for more information at no cost or obligation please contact me Jonathan Watson jmw@currencies.co.uk

Thank you for reading and I look forward to hearing from you.

Australian Dollar Strength – Economic Outlook Positive

The Australian dollar is in a much better place at present finding considerable support including having made gains in excess of 3% against the pound in the last month. Australian Gross Domestic Product has performed very well climbing to 3.1% in the first quarter of 2018 which has restored some confidence in the Aussie. A small boost in global growth and specifically in the Chinese economy seems to be paying dividends for the Australian dollar and this rally may have further to go. Chinese retails sales data next week could create some market reaction and a strong number could prove beneficial for the Aussie.

As things stand the dollar has not been as adversely affected from the trade tariffs imposed between China and the US. The advantage for Australia is that it shares very close trade ties with China so unless a global trade war escalates that drags Australia in too then this relationship could in fact boost the dollar further. Clients looking to sell Australian dollars for pounds are seeing a much better opportunity to convert and may wish to consider taking the risk out of the volatile currency markets. Rates for AUD GBP are sitting at 1.7680 and are considerably better than the 1.85 highs seen in recent months.

Those clients looking to buy Australian dollars with pounds should pay very close attention to developments in British politics next week. The Brexit withdrawal bill is finally going to go through the House of Commons and will be voted on. If UK Prime Minister Theresa May is unable to push through her vision of Brexit should Conservative rebels vote against what was in the manifesto then this could spell danger For the Prime Minister and the government. Any vote of no confidence pushed by Labour could see major volatility for sterling exchange rates and major market reaction.

For assistance in making transfer when either buying or selling Australian dollars then please get in touch with me at jll@currencies.co.uk