Chinese data gives the Australian Dollar strength to round off the week

We have seen a little strength for the Australian Dollar as we head to the end of the trading week, following better than expected Chinese economic data released overnight.

Trade surplus in China was a lot better than expected coming in way above expectations of $179bn at a level of $326.1bn, this was seen as good news for the Chinese economy and with China being a huge trading partner for Australia any good news from China can lead to Australian Dollar strength.

We have very little in terms of economic data to come out as the weekend nears, so all eyes will now more than likely be on the RBA interest rate decision meeting minutes which are due out next week. This will show what was discussed at the last Australian interest rate decision and my feelings are that we may see a little Australian Dollar weakness after this comes out.

Philip Lowe commented last week that he does not expect to see a rate hike being a possibility for a while, and with the level of household debt and poor wage growth still being a concern for the RBA I believe this will be echoed in the meeting minutes and that will drop the value of the Australian Dollar.

An interest rate hike is usually seen as a positive for a currency and with other major economies currently seeing rate rises we are starting to see the Australian Dollar get left behind. As an example, the interest rate in the U.S is now higher than Australia’s and with the U.S Dollar being seen as a less risky option yet with a more attractive return we are seeing a flow of money out of the Australian Dollar and into the U.S Dollar as a result of this.

If you have a large currency exchange to make involving Australian Dollars then it is well worth you contacting me directly. You can get in touch with me by emailing me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to contact you personally to see how I can help you. We offer highly competitive exchange rates along with help on timing your transaction and would like to think our customer service is way above and beyond elsewhere. I look forward to speaking with you.

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.

GBP AUD Exchange Rates Rally on Uncertainty for Commodity Currencies (James Lovick)

The Australian dollar has weakened again after coming under pressure from the recent trade tariffs being imposed by China and the US. The Australian dollar as a commodity currency is impacted negatively when there is a threat to global growth and that risk is very real in the current climate. With tit for tat trade tariffs being imposed by both nations there have been concerns that things could escalate and end up in a global trade war.

Chinese President Xi Jinping made a conciliatory speech this morning and even suggested opening trade which would include a reduction on import tariffs on vehicles and even hinted at encouraging imports. It follows a tweet from Trump yesterday which highlighted that China has been slapping on tariffs to the tune of 25% whilst in the US that tariff has only been 2.5%

I don’t think anyone is expecting a fully blown trade war but there is still some nervousness about the trade disputes which also moves into the realms of the NAFTA trade agreement between the US, Canada and Mexico. The Canadian dollar is another commodity currency also feeling the pinch and how Trump handles these negotiations will almost certainly have a knock on effect on the Aussie.

Those clients looking to buy Australian dollars with pounds could see some more positive movement as the trade disputes intensify but at some point an outcome should be reached and this should be beneficial for the Aussie. Rates for GBP AUD are hovering around 1.83 and are proving to be some of the best levels we have seen for some time. A rally in commodity prices on brighter global outlook could see material gains for the Aussie and reverse the good gains that have been witnessed.

For more information on Australian dollar exchange rates and assistance in making a transfer either buying or selling Australian dollars then please get in touch with me at jll@currencies.co.uk

Sterling to Australian Dollar rate remains above 1.80, is a move towards 1.90 now a possibility?

The Pound to Australian Dollar exchange rate has managed to hold onto the gains it made recently, which could be a key indicator for future movement between the pair.

The key level of 1.80, which had acted as a resistance for almost two-years was broken easily by the Pound as news broke that the UK and EU negotiators have come to an agreement regarding the transitional Brexit agreement.

This news boosted sentiment surrounding the Pound as it saw a boost across the board of major currency pairs, but the gains against AUD have been exaggerated as AUD has been coming under some pressure of its own.

AUD has lost its status as one of the highest yielding major currencies after the US Fed Reserve bank has begun hiking rates in the US, with plans of further hikes this year on the cards. This in-turn has made the Aussie Dollar less attractive, which has helped the Pound hit these high levels.

Despite some poor data out over the last week in the UK’s construction, manufacturing and services sectors the Pound has manged to hold on to its gains which I believe is a positive sign for the Pound moving forward.

There is quite a quiet week of data scheduled for this week out of the UK, but I do think tomorrow could be the busiest day as UK GDP and Industrial and Manufacturing production figures are set for release all before lunchtime.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Westpac issues warning for Australian dollar sellers (Dayle Littlejohn)

In a recent report by Westpac have warned their Australian clients that further falls could be on the horizon for the Australian dollar. Commodity prices including iron ore and coaking coal (used for making steel) have dropped 15-20% since February and this trend could continue if there is a slowdown in china like many forecasters are predicting. One of the reasons why people believe there will be a slowdown is because China appear to be entering a trade war with the US.

In other news Governor  of the Reserve Bank of Australia Philip Lowe will address the public Wednesday morning and give another overview of how the Australian economy is performing. The recent commentary from the Reserve Bank of Australia is that interest rates will remain on hold for the time being. This is another reason why forecasters are suggesting the Australian dollar could lose further value as carry traders sell off their positions and look to purchase US dollars due to the higher returns now on offer.

When buying or selling Australian dollars it’s important to analyse the other currency that you will be converting as it can have an impact on the exchange rate you receive. The key data releases to look out for around the globe are ECB Mario Draghi’s speech, US Consumer Price Index, US FOMC minutes all Wednesday afternoon and Governor of the Bank of England Mark Carney’s speech Thursday afternoon.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

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

Will GBPAUD rates remain above 1.80?

The pound to Australian dollar exchange rate has been above 1.80 comfortably now for a period and the outlook is now much more positive for the future. The Australian dollar has been losing its shine as investors look for more profitable avenues overseas which include the US dollar. A key driver of late on GBPAUD has been the interest rate changes in the US and the UK, with them hiking, as in the US, or on the way to hiking – the UK.

This difference in outlook compared to the RBA (Reserve Bank of Australia) who are currently refraining from hiking has allowed big movements on the pound and US dollar against the Aussie. The RBA has been monitored very closely over its performance and attitudes to raising interest rates and this will likely continue to be a feature in the coming months.

Generally speaking, I would imagine the RBA will continue to be soft in its assessments moving forwards and this will keep the Australian dollar on the weaker side. Despite this, the Aussie may well find some favour if there are any unexpected twists and turns or bumps in the road on the US and UK path to raising interest rates.

Another factor which will likely weigh on the GBPAUD rate will be the progress on Brexit which could see the pound to Australian dollar rate fall below 1.80 if there are further troubles over the Irish border or concerns over what type of trade deal the UK will get. Any surprisingly strong data from down under might see the Australian dollar fight back against sterling too.

In April I expect a range between 1.78-1.85 as the conditions that have seen us hit the current rates of exchange continue to act as a driver on the pair. Thank you for reading and if you have any upcoming transactions and wish for some insight and information on achieving the best rates of exchange, please do get in touch with me Jonathan Watson by emailing jmw@currencies.co.uk directly.

Buying Australian Dollars? GBP AUD Supported (James Lovick)

The Australian dollar remains under a fair amount of pressure amidst global economic and political changes. Rates for GBP AUD remain over 1.80 for the pair although a move higher to 1.90 may prove difficult in the short term. Those clients looking to buy Australian dollars with pounds may wish to consider locking in at today’s rates and take advantage of these higher levels which have only recently become available.

The pound has been boosted following slightly better manufacturing numbers released yesterday as per the Purchasing Managers Index. Tomorrows services sector data for the UK could prove particularly volatile for the pound and a strong number could see a rally in the GBP AUD pair.

The Australian dollar could also come under added pressure in the short term as a result of some of the trade barriers which are being erected by China and the US at present. If trade barriers and tariffs continue to go up then the Australian dollar could be one to suffer although the markets are hopeful this behaviour will not turn into a fully blown trade war.

Those clients who are looking to sell Australian dollars for pounds should continue to see more volatility in the coming weeks and months as result of the ongoing Brexit negotiations between Britain and the EU. One of the reasons the pound has rallied is due to the fact that the second round of negotiations has just been completed with talks now progressing on to future trade. Once the thorny issues of the Irish border and also whether financial services can be included in and trade deal have been resolved this could prove beneficial for sterling exchange rates.

For more information on the Australian dollar and how to maximise on the rates of exchange when there is sudden movement then please feel free to get in touch with me at jll@currencies.co.uk