Tag Archives: Australian inflation data

Pound to Australian Dollar exchange rate breaks through 1.80 barrier

The pound to Australian dollar exchange rate has been supported with rates sitting just below 1.80 for the GBP to AUD pair. Brexit uncertainty has kept the pound at bay in recent weeks although some optimism that a deal will be reached is helping lift the pound slightly. What is interesting though is that despite some stronger economic data from the UK the pound is struggling to find any real momentum for a big jump higher. It highlights how the wider issue of Brexit is preventing the pound from gaining until clarity is offered on a deal. The risk of a no deal remains and with parliament now prorogued until October 14th it leaves an uncertain period ahead of that Brexit deadline of 31st October 2019. The markets will now pay particular attention to the next EU summit to be held 17th October. It remains to be seen whether a last minute concession will be offered at this time for an agreement to be reached between Britain and the EU. Those with pending requirements to either buy or sell Australian dollars would be wise to plan around these important dates. A hearing in the Supreme Court next week will also be held after arch Remainer Gina Miller lost a court case in the high court when it was concluded it was legal for Boris Johnson to prorogue parliament. Today the highest civil court in Scotland has overturned that ruling stating the suspension is unlawful. Expect more volatility and Brexit twists and turns depending on that outcome at the Supreme Court next week.

UK economic data is light for the UK so focus will turn to Australian inflation expectations released overnight. The Reserve Bank of Australia has cut interest rates twice over the summer which has helped see the dollar weaken. The ongoing trade was between the US and China continues to impact on the global economy to which the Australian dollar is adversely affected. For more information on the Australian dollar and how to plan around these important events then please contact me James at jll@currencies.co.uk and I will be happy to assist.

Thursday’s UK GDP Figures Key for GBP/AUD Exchange Rates (Matthew Vassallo)

GBP/AUD rates continue to float around 1.60 on the exchange, providing AUD sellers with some of the best rates of the past three years.

These levels are a perfect example of how market conditions can shift, which is why those clients holding AUD should be considering their position and looking to protect the huge gains they’ve made over the past six months.

To put this in context clients who are looking to exchange a 200,000 AUD/GBP transfer have made an additional £25,000. Despite GBP/AUD falling lower than this back in 2010, the current levels are almost unprecedented when you consider recent history and as such those clients holding AUD should be protecting the gains they’ve made.

GBP/AUD has always been a more volatile pair than GBP/EUR or GBP/USD and therefore investors will look to make money from the bigger swings we can see on the pair. However, the flip side to this is that the losses can be just as drastic, which mean it is not always easy to predict which way the trend will go, as when it does move it can be aggressive and without warning.

We also need to consider the reserve Bank of Australia’s (RBA) stance, which has always been to try and control the strength of the AUD, for fear of alienating their trade partners and this is another reason I would be wary about assuming the current spike will continue.

Looking ahead and we have some key economic data releases this week to keep an eye on. Tomorrow we have Bank of England (BoE) governor Mark Carney’s speech, which will give us a key insight into our central banks stance on currency economic conditions inside the UK. It should also point towards potential future growth and their current monetary policy stance, so expect additional volatility on GBP/AUD exchange rates during Tuesday’s trading. Then overnight on Tuesday we also have Australian inflation data, which is expected to show a small improvement.

The data doesn’t stop there, as overnight on Wednesday we have the latest import/export figures for Australia, which are always key due to the heavy reliance they have on the export of their raw materials, to China in particular. However, it is Thursday that hold the key with the latest UK Gross Domestic Product (GDP) figures, which is perhaps the month’s key release for investors. This is because it gives us an overview of the current economic climate and will drive the markets and exchange rates alike.

If you have an upcoming GBP or AUD currency requirement the current levels are a stark reminder as to how important it is to be kept up to speed with key market movements, ahead of any prospective currency exchange. The currency markets can move aggressively and without prior warning and this is where a proactive broker can help you time your trades and maximise your currency transfers.

If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

Australian Inflation slows weakening the Australian Dollar vs Sterling (Tom Holian)

Australian Inflation data published this morning came out slightly lower than expected with quarter on quarter figures showing a fall from 0.8% to 0.7%.

With the GBPAUD rates having hit recent 6 year highs recently the market has been primarily influenced by the fall in demand for commodities from China which has really slowed.

Indeed, the Chinese stock market has fallen by alarming rates for the last few months and you can almost tie the drop to the fall in the rates for AUD vs GBP.

GDP in Australia has for the 11th time in a row come out lower than expected with 2.3% compared to the required 3%. This has also led to a fall in the value of the Australian Dollar.

Later today the Bank of England minutes are published and with Governor Mark Carney hinting last week that the UK could see interest rates before the end of the year any further evidence of this with the minutes could see Sterling gaining against the Australian Dollar.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Australian Inflation Data (Tom Holian)

Australian inflation data out this morning came in much lower than expected at just 2.9% compared to the expectation of 3.2% and the GBPAUD exchange rate has shot up by 1% already this morning.  Inflation figures are often used as an indicator in what to do with interest rates so low inflation often puts pressure on a central bank to cut interest rates. With the RBA in February announcing an end to their interest rate cutting cycle could this provide us with an about turn?

The Bank of England minutes are due shortly and with no talk of QE all eyes will focus on any comments the BoE may make about future interest rate rises. With UK unemployment the best it has been since 2009 and coming in at 6.9% last week much better than expected this could help to push up GBPAUD exchange rates.

The looming news will be how China performs this year as the Australian economy is so heavily reliant on Chinese growth. With China having slowed to 7.4% during the first quarter of 2014 and a fall from 7.7% in the final quarter of 2013 this could harm the Australian Dollar in the longer term. Click on this link for an interesting article http://www.bbc.co.uk/news/business-27045527

If you have a currency requirement to make and want to save money on exchange rates compared to using a bank then contact me directly for a free quote Tom Holian teh@currencies.co.uk