Tag Archives: australian

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.

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.

Major banks expect further AUD weakness following RBA interest rate decision and statement

Today’s RBA (Reserve Bank of Australia) interest rate decision and press conference has added further fuel to the fire for Australian Dollar weakness in the coming months.

With the view that dropping commodity prices and the fact that the RBA have now held interest rates for a record breaking 18th monetary policy meeting in a row, it does appear that there may be a fightback from other major currencies against the Australian Dollar.

As mentioned in previous posts an interest rate is of great importance to a currency as it makes it more or less attractive to investors, what we are seeing in other areas around the globe is other economies starting to raise interest rates, most notably America and the U.K and this is in turn leading to a flow of money out of the Australian Dollar and into the perceived safer currencies, thus making the Australian Dollar weaker and more expensive to buy.

Expectations are currently for the RBA to potentially make their next interest rate move in November of this year, if this is the case then we are likely to have seen one further rate hike from the U.K and potentially two more from the U.S before that happens, which may lead to further weakness as the year progresses.

We are at the start of a new month so be sure to keep a keen eye on Australian economic data this month as this may impact on what the RBA decide to do.

If you have the need to buy a large sum of Australian Dollars in the near future, or you need to exchange a large sum of Australian Dollars into another major currency then I can help you personally. Not only do we offer up to date market information but we can also help you achieve the best exchange rate when you do come to lock in your currency, along with assistance with the timing of your transfer.

You are more than welcome to get in contact with me (Daniel Wright) personally if you feel that our service will be beneficial to you, you can email me on djw@currencies.co.uk and I will be more than happy to get in touch with you to help you put together a game plan for your specific situation.

Australian Dollar exchange rates look ahead to RBA interest rate for next stages of movement

Australian Dollar exchange rates have weakened against a basket of major currencies this week so far and depending on just what we hear back from the RBA during their interest rate decision and monetary policy statement next week. Expectations are for no change to interest rates either at this particular decision or for the coming months but what will be key for the Australian Dollar will be the comments in the monetary policy statement afterwards, and the tone taken by the RBA.

Recent comments from the RBA have suggested that they are not happy with Australian economic data at present and that this will hold them back from looking to raise rates in the near future. This is slowly dropping Australia behind, investors are pulling their money out of the Australian Dollar to seek higher returns elsewhere, for example moving money into U.S Dollars where the interest rate is now higher and the currency is perceived as a safer option.

One of the key issues for the RBA at present is the fact that average earnings/wage growth is not picking up at the pace they would like it to. This causes an issue as if the general consumer’s earnings are not moving up in line with inflation, then essentially people are going to have less money in their pocket to spend which leads to the economy weakening slightly.

This issue has been quite common around the globe, however many other regions are now starting to find that their average earnings figures are rising which is giving them more room to raise interest rates which is why the Australian Dollar is starting to suffer as a result.

My personal view has been that we will have a weak year for the Australian Dollar this year, and I have been saying that for a number of months now. It does appear at present that these predictions are starting to come true.

If you have a currency exchange to carry out in the coming days, weeks or months ahead and you would like my assistance both with the timing of your transfer and getting the best rate when you come to book it out, then do feel free to get in touch with me (Daniel Wright) directly on djw@currencies.co.uk and I will be happy to speak with you personally about your own situation and how to approach it. We specialise in currency for international property purchases/sales or clients who are emigrating or moving home. I look forward to speaking with you.

Get the most out of your Australian Dollar exchange rate – How we can help

With very little in terms of economic data out to impact Australian Dollar exchange rates this week I thought I would remind our regular readers that not only can we offer up to date and informative market information but all the writers on this site also work for a currency brokerage too.

We can offer all of our readers market leading exchange rates along with extremely high levels of customer service. If you are currently having to trawl through the internet to find out what the latest info is on the Australian Dollar then in my opinion your current choice of currency broker is not doing what they should be, as they should be available for you to let you know not only what has happened but their view on up and coming market data too.

That is exactly how we can help you and if you would prefer a more personalised service then it is well worth getting in touch.

You can fill in the enquiry form on the right hand side of this page or you can email me (Daniel Wright) directly on djw@currencies.co.uk with a brief description of your currency requirements and I will be more than happy to get in touch personally.

Many people these days are also pushed onto online trading platforms which are convenient but unfortunately convenience does quite often tend to cost more, so if your broker has also got you using their online system then you only have a robot giving you a price instead of a human actively working on the price for you, therefore more often than not the online platform is much more expensive. When transferring larger sums of money it is absolutely key to maximise your rate as the difference can be hundreds if not thousands of Dollars so be sure to check out your price and email me for a free, no obligation quote to check you are still getting a good level. I am happy to carry out a quick currency audit for you.

You can get in touch with me on djw@currencies.co.uk or by filling in the form on the right hand side of this page. I look forward to assisting you should you need me.

 

 

Australian Dollar still losing ground against most currencies – Interest rates are key globally

The Australian Dollar is not having a great run of things lately, as numerous economies appear to picking up and the U.S have once again raised interest rates, bring them ahead of the current rate in Australia.

The reason this current movement is important is that U.S interest rates are now higher than interest rates in Australia, so what essentially happens is investors will move their funds out of the Australian Dollar and into the U.S Dollar, as it offers a more attractive return on their money and is seen as a more stable currency.

The outlook for Australian interest rates still does not suggest any hike in the near term, however the Federal Reserve in the States did dampen expectations a little for the year ahead in last nights monetary policy statement.

I still feel there is further room for Australian Dollar weakness in the coming weeks, most notably we have seen a big movement for Sterling against the Australian Dollar over the past week or so, breaking through the key level of 1.80 and not stopping there.

Sterling is on a good run at present, and now that average earnings figures have fallen in line with inflation there is room for interest rates in the U.K to start coming up again too, the Bank of England interest rate decision later this morning will be key and so will the minutes from the meeting, as they may give an indication on future plans.

If you are in the position that you may need to carry out a currency exchange in the coming days, weeks or months ahead then it is well worth getting in contact with me directly, you can email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to contact you directly with live quotes and to help you develop a strategy as to how to move forward with your transaction.

 

Predictions of a higher GBP/AUD rate mount as Brexit transitional deal hopes grow (Joseph Wright)

The Pound to Australian Dollar exchange rate climbed during today’s trading session, with the pair now trading almost at the very top of the current trend.

The mid-market level for the pair hasn’t breached 1.80 in some time but the pair are currently trading in the 1.78’s, meaning that for those planning on making a GBP to AUD transfer are looking at attractive levels considering recent trading levels. I would add that the lower end of the trend is 1.60 so hopefully you can see my reasoning as to why the current levels are around the top of the market.

There are hopes that the Pound will climb further, and this week the Brexit Secretary, David Davis said that the UK ‘can live with’ a shorter transitional period which has boosted the Pound’s value along with the likelihood of UK interest rates climbing sooner than many had expected.

Analysts at Lloyd’s Bank have recently upgraded their forecasts for the Pound to Aussie Dollar rate this year. They had previously expected to see the pair trade at 1.72 at the inter-bank level although the changing tones from the Bank of England and the Reserve Bank of Australia has changed their minds, with them upgrading their views on the Pound’s potential.

There isn’t any major economic data coming out of the UK or Australia this week, so I expect the pair to be driven by politics for the remainder of the week.

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.

AUD makes slight gains against most majors – Plenty for the market to get stuck into this week

Tomorrow morning sees the release of Australian GDP (Gross Domestic Product) or growth figures for the fourth quarter of 2017. Expectations from major analysts is that we may have seen a slight slip from 0.6% to 0.5% Month on month so this could give the Australian Dollar a poor start to the trading day.

Earlier in the week we had the RBA interest rate decision and rate statement which didn’t throw up any major surprises, wage growth is still a concern for the RBA which will more than likely hold them back from raising interest rates and this could weigh on the Australian Dollar.

Thursday morning brings import and export data, along with Trade balance figures from Australia. Chinese data is also due out at the same time and due to the huge volume of exports from Australia to China this can also have an impact on the value of the Australian Dollar too.

on Friday we have very little in terms of data from Australia but we do have have Chinese inflation data, expectations are for a slight rise for inflation figures over in China which may give a slight to the Australian Dollar too.

My personal opinion is still that the Australian Dollar may not have a good few months coming up, with little movements in interest rates coming up and other central banks poised to make their move and hike rates in the near future there could be a period of weakness ahead. On top of this there is plenty of global uncertainty out there both with the global economy and numerous areas politically.

Any global uncertainty can also weaken the Australian Dollar as it is perceived as a riskier currency therefore can drop in value when uncertainty is rife.

if you need to carry out an exchange involving buying or selling Australian Dollars in the near future, and you would like to achieve the very best rates on top of the highest level of customer service then feel free to get in touch with me directly. You can contact me (Daniel Wright) by emailing djw@currencies.co.uk and I will be more than happy to get back to you personally.

A quiet week for Australian data but that does not mean the Australian Dollar will remain flat

We have not seen any major movements from the Australian Dollar against other major currencies this week, but that does no mean that the rest of the week the volatility will stay away.

Most Australian Dollar movements for the rest of the week will come from other announcements around the globe, including numerous economic data releases and speeches from the U.S.

New Federal reserve Chairman Jerome Powell is currently speaking and is also due to speak again tomorrow, due to the fact that these are his first speeches since taking control, any hint on his personal plans for fiscal policy will be of great interest to investors and speculators alike.

At present it seems that the markets are expecting three interest rate hikes from the U.S in the year ahead and should the new man in charge confirm that he plans to progress along the same lines then this may lead to the Australian Dollar losing value in the coming weeks and months.

As mentioned a number of times before on this site any further hikes in interest rates from the U.S will make their interest rate higher than that of Australia, therefore you would expect investors to shift money from the Australian Dollar into the U.S Dollar, not only to ensure that they get a better return but also due to the USD being seen as a safer haven and less volatile.

Commodity prices will still also be of great importance to those following the Australian Dollar in the year ahead and with projections of a slight drop off in commodity prices as the year progresses this could also weigh on the Australian Dollar too.

For anyone specifically with an interest in AUD/GBP no matter which way you need to move money, Friday morning will also be key for you as Prime Minister Theresa May is due to be speaking to the British public with an update on  Brexit, so this could lead to volatility for Sterling hence moving the AUD/GBP rate.

If you have a currency exchange to carry out involving the Australian Dollar then feel free to get in touch with me directly, I can help you not only achieve the very best rate of exchange but our levels of customer service and speed of transfers are second to none.

Feel free to get in touch with me (Daniel Wright) the creator of this site by emailing djw@currencies.co.uk and I will be more than happy to help you personally.

What factors could push the Pound to Aussie Dollar rate above 1.80 this year? (Joseph Wright)

The Pound to Aussie Dollar rate has been hovering just below the 1.80 mark for some time now, and although the GBP/AUD pair appear to have consolidated between 1.75 and 1.80 the pair are yet to properly test the 1.80 threshold.

AUD has been boosted in the early hours of this morning after the Reserve Bank of Australia’s minutes from their latest interest rate decision were announced. The RBA remains positive focusing on wage growth and a pick-up in the global economy moving forward which could lead to a rate hike from the RBA later in the year.

The topic of a rate hike in Australia is likely to be key moving forward as a number of other major economies have begun hiking rates now. AUD had previously benefited from having some of the highest interest rates available in the developed world but as other currencies now offer similar returns AUD has lost its appeal somewhat, and this issue is what could give the Pound a chance of gaining on AUD pushing the GBP/AUD above 1.80.

JP Morgan recently offered their opinion on the Aussie Dollars prospects and suggested the currency could fall as weaker commodity prices and monetary policy divergence put pressure on the AUD’s value.

There is an important data release out this morning from the UK in the form of Average Earnings data. This is key because the figure has disappointed recently and struggled to keep up with inflation levels which had previously made the BoE hesitant to hike interest rates. Should wages have increased over the past 3-months the chances of a rate hike are improved so I would expect to see a jump in the Pound’s value should this be the case.

Planning around events such as these can prove beneficial, so do feel to get in touch to discuss any upcoming transfers you plan on making.

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.