Tag Archives: Best AUD exchange rates

US Trade Wars to hurt the Aussie (Daniel Johnson)

How will the ongoing Trade Wars effect AUD?

Trump is  fighting trade wars on several fronts. He is unhappy with the trade deals currently in place with the EU, China and the US and is also renegotiating the North American Free Trade Agreement (NAFTA) involving Canada and Mexico.

The US has been imposing tariffs on all fronts, with the tariffs of choice being steel and aluminium. The tariffs placed on China could prove particularly detrimental to the Australian economy due to Australia’s heavy reliance on the Chinese purchasing it’s raw materials. The tariffs could hit Chinese growth which would cause a change in demand and price for Australia’s raw materials, particularly iron ore.

Global economic uncertainty is causing investors to move away from riskier commodity based currencies such as AUD in search of safe haven investments. Despite the US being at the centre of the ongoning trade wars. It is proving to be the destination of choice for investors. Interest rate levels are impressive and there is predicted to be several more hikes from the Fed this year. Ten year treasury bonds are also offering some of the highest returns in years.

Personally I feel China is in a trade war that cannot be won. If they intend to match US tariffs Dollar for Dollar they would need to impose tariffs on all US exports which is simply not feasible and would hit both economies hard. This would in turn have repercussions on the Aussie.

GBP/AUD -Sterling remains fragile due the lack of clarity on access to the customs union. There is due to be a proposal put forward from Theresa May to her cabinet at Chequers on Friday. If the proposal is accepted on the third attempt Brexit negotiations can move forward and the proposal can be presented to Brussels.

If the proposal is initially accepted on Friday you can expect Sterling strength. Personally if I was buying Australian Dollars short term I would be moving in the 1.79s. 1.80 is proving to be a resistance point.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavor to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.
If you already have a currency provider in place. Drop me an email with what you are being offered and I am very confident I will be able to demonstrate a significant saving. It will only take you two minutes and I am sure it will be worth your while. You can trade in safety knowing you are with a Foreign Currency Direct PLC, a firm trading for over 16yrs and FCA registered.

If you would like my help feel free to email me at dcj@currencies.co.uk.

Thank you for reading.

Weak data results in a drop for the Aussie Dollar, where to next for AUD exchange rates?

There’s been a loss for the Aussie Dollar across the board of major currency pairs today, with it’s losses against the Pound and the Japanese Yen being the biggest.

Employment figures down under for May were released this morning, and that caused the Aussie Dollar to drop as the figures released were worse than expected. The figures have got worse in recent months which is another reason for the sell-off of the Aussie Dollar.

Some disappointing data out of out of China recently has also weighed on the Aussie Dollars value, owing to the close trading relationship between the two nations. This isn’t an unusual pattern and those planning on making a currency exchange involving the Aussie Dollar should consider this in future.

The poor data out of China has caused China-linked commodity prices and also the Chinese stock market to fall, and this isn’t a great sign for the Aussie Dollar moving forward. Fears surrounding the trade tariff’s potentially put on China by the US are also weighing on AUD exchange rates.

There’s a speech planned by Reserve Bank of Australia assistant Governor Ellis tomorrow. Although no changes to monetary policy down under are expected this year its worth following his comments in case he alludes to future monetary policy changes or even the slowdown in the Australian economy recently.

If you would like to be notified in the event of a major market move for AUD exchange rates, do feel free to register your interest.

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.

 

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 reaches higher levels on global confidence

The Australian has found some form as investors look to consolidate a choppy few months on the currency and seek to protect themselves for what might well be a more buoyant few weeks and months ahead. Whilst it is unlikely that the RBA (Reserve Bank of Australia) will raise interest rates anytime soon, the expectation is that the next move will be higher.

With this in mind investors are bracing themselves for future positive movements from the Australian dollar which might well serve clients much better in the future. Clients looking to buy or sell Australian dollars are finding a very interesting junction up ahead as the market struggles to make its mind up about the future direction.

The Australian dollar is seen as a commodity currency and it will rise and fall in accordance with expectations on the global economy and the global economic outlook. This is underscored by the recent developments in Italy and also the Trade Wars with China. Donald Trump has been looking to escalate the Trade wars which would have put pressure on the Chinese economy, hence weakening the Australian dollar.

However, these issues have not been as bad as many expected, therefore the Australian dollar has found some support against other currencies. With June presenting plenty of opportunity to move the currency markets, clients buying or selling Australian dollars should be bracing themselves for a busy month ahead.

If you need to make any kind of transaction in the future we are here to help with expert information and insight to help in the planning and management of any transfer. Please contact me Jonathan Watson on jmw@currencies.co.uk

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

 

 

Could Australian dollar weakness could now be over?

The Australian dollar had been struggling in recent months as investors began to unwind trading positions that positioned the Australian dollar to be used for investors in carry-trades. The carry-trade is where investors borrow in a low yielding currency to invest in a high yielding currency. As sentiments change this has now been unwound presenting some big shifts in the currency markets.

With the US dollar now rising higher as they raise interest rates, and are expected to raise further, the US dollar is now attracting more investment. I feel therefore that the recent weakness on the Australian dollar which has now abated could have been the result of much of the more recent strength being eroded. This move of late which has seen the Australian dollar rising could now present some much better opportunities to sell AUD for well-prepared clients.

Some key evidence of this would stem from the RBA (Reserve Bank Australia) who are believed to be in a process of looking to raise interest rates longer term. The overall picture on the markets is now much more positive for the longer-term perspective for the raising of Australian interest rates. This would see the GBPAUD rate potentially dropping further which might see it hit closer to the 1.75 level in the coming weeks.

If you have a transfer buying or selling Australian dollars for pounds, please speak to me to discuss the requirements. Next week is some key news coming from the UK economy which might trigger some big movements on GBPAUD levels so any clients looking to buy or sell the Australian dollar should be prepared for a busy week.

For more information on the best rates and further market insight and strategy to maximise your position, please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

Wage growth puts further pressure on the RBA

This week Australia have released the latest quarterly wage growth numbers and Australian dollar sellers have been left disappointing. The consensus was for wages to have grown by 0.6%, however in fact wages had grown by 0.5% for the quarter. The poor wage growth numbers are keeping inflation beneath the Reserve Bank of Australia’s target which is directly having an impact on Australian dollar exchagne rates.

If wage growth numbers continue to dwindle along and inflation remains below the RBA target, policy makers will have no choice but to leave interest rates on hold at record lows and this is what many leading forecasters are predicting, which is no surprise. Speculators move their assets chasing higher returns of interest and with the US marching ahead and potentially looking to raise interest rate another couple of times this year investment is going to leave Australian shores and land in the US.

In regards to GBPAUD exchange rates the pound has been performing worse than the Australian dollar as exchange rates have dropped below 1.80. UK economic data has disappointing which has stopped the Bank of England from raising interest rates and the Brexit negotiations continue to weigh on the pounds value. Today UK Prime Minister Theresa May confirmed that the UK will release a whitepaper before the June summit which will outline the UK’s full position.

When the whitepaper is released this could have a clear indication about the future path of the UK and therefore GBPAUD exchange rates. If you are converting GBPAUD within the next 3 months this event should be monitored closely. 

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 the currency pair you are converting, 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.

Australian Dollar predicted to fall throughout 2018

Those of our regular readers hoping for a higher Aussie Dollar will be aware of how its upside is currently limited, and how the the US Dollar is partly behind the softening Australian Dollar.

The most simplistic way of looking at it, is that now the US Dollar is in many cases offering a higher rate of return than the Australian Dollar, investors are more likely to hold funds in that currency as opposed the the Aussie. Previously AUD offered one of the highest rates of return within the developed world and that resulted in a strong Aussie Dollar.

The issue now is AUD has a long way to fall if it’s to return to more familiar trade levels when we consider historical levels, which is perhaps why some predict to see it continue to fall. To put the US Dollars increased attractiveness into perspective, the US Dollar Index (which measures the US Dollars performance against a number of major currency pairs) has risen 3% since April the 16th. A clear indication of how investors are pooling funds into the currency.

The Reserve Bank of Australia on the other hand is adopting a different approach to the Fred Reserve Bank in the US. There are no interest rate changes from the RBA expected until next year, which is perhaps another reason that some economists are expecting to see the Aussie Dollar fall.

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.

US dollars strength puts pressure on the Austrlaian dollar

In recent weeks the US dollar has gone from strength to strength and investors are second guessing that commodity currencies will continue to come under pressure in the weeks to come. The US dollar index which measures the US dollar against a basket of major currencies is up 3% since mid April. Furthermore 10 year US bond yields have broke through 3% for the first time since 2014.  When bond yields are on the rise this tends to mean the central bank have another reason to hike interest rates.

Over the last few years speculators have left their assets in the Australian dollar due to the higher interest rates. But now that the US have hiked and it appears that further hikes are on the horizon I expect speculators will continue to sell off their Australian dollars in a bid for higher returns elsewhere. In regards to USDAUD exchange rates the Australian dollar has dropped below 0.75 for the first time in 10 months.

The problem the Australian dollar has is that the Reserve Bank of Australia have announced that there is no reason to hike interest rates anytime soon and some economists are suggesting the Australian dollar will be left behind as a hike doesn’t look likely for at least 18 months.

When buying or selling Australian dollars its always important to analyse both currencies you are converting. For example it looks like AUDUSD will continue to fall in the weeks to come as the US dollar continues to strengthen therefore selling Aussies to buy US dollars sooner rather than later may be wise. However if converting AUDGBP, the pound is under pressure because of Brexit and the Bank of England holding off for a period may be wise.

For people that buy and sell Australian dollars on a regular basis or are looking to make a one off transfer, the currency company I work for can save you money. Feel free to send me the reason for why you are converting currency, the currency pair you are trading (AUDGBP, AUDUSD), and the timescales you are working to and I will send you my forecast and the process of using our brokerage drl@currencies.co.uk.

RBA Keep rates on hold (Daniel Johnson)

RBA Interest Rate Outlook does not bode well

There were no surprises during the early hours as the Reserve Bank of Australia (RBA) decided to keep rates on hold at 1.5%. The RBA stated the need for consistent and sustainable growth before a hike would be considered. I am of the opinion it could be 2019 before a hike. The Aussie has suffered as a result.

GBP/AUD – The Pound had made significant advances following  a host of positive data, but this was followed by some very poor figures. Some have attributed the fluctuations to the beast from the east weather conditions although there is concern there could be serious problems with the economy in general. There was widely expected to be a rate hike from the Bank of England (BOE) in May, but following the worst GDP figures for five years last week this could well be put on hold.

Despite this, I think current buoyancy levels between 1.80-1.85 will remain. The big picture is that Sterling is chronically undervalued and GBP/AUD is only at current levels due tot he uncertainty surrounding Brexit. Clarity on the matter will strengthen the pound, keep in mind pre-Brexit levels were 2.20 +.  If you are an Aussie seller mover at 1.81-1.82. Aussie buyers 1.84 if you have to move short term.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor 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.