Tag Archives: china

Australian Dollar continues to make gains – Will this continue? (Daniel Wright)

We have seen the Australian Dollar have a fantastic week against all major currencies following on from both positive growth figures in China and extremely hawkish comments from the RBA (Reserve Bank of Australia) that they would be more than happy to see the cash rate in Australia make its way up to 3.5%.

Any interest rate change or even just the hint of it happening can move the value of a currency, and considering that the RBA have suggested a number of hikes with these comments we have seen the Australian Dollar soar from strength to strength. When an interest rate is raised it does make that currency more attractive to investors and with the rule of supply and demand if more people are interested in buying Australian Dollars then the price will rise.

Tomorrow morning (or overnight tonight for our readers in the U.K) we have Australian unemployment figures and this has the potential to buck the trend. Expectations are for unemployment to have increased from 5.5% to 5.6% an d should this be true then this may buck the trend for the time being.

Personally  I feel this is a prime opportunity at present to sell Australian Dollars as I still do not fully believe the Australian economy is such great shape that the RBA are hinting that it is, also, although China has recently shown good data I still feel there are plenty of issues still to resolve with the huge level of borrowing happening over there.

If you have Australian Dollars to sell or indeed buy then you need to have a proactive and experienced currency broker on your side in turbulent times such as these. If you feel I could be beneficial to you then I would be more than happy to help you. You can contact me (Daniel Wright) on djw@currencies.co.uk or by calling 0044 1494 725353 and asking for me and I will be more than happy to explain the process to you and help you put together a plan of action.

Australian Dollar gains strength after solid trade data overnight (Daniel Wright)

The Australian Dollar gained ground against most major currencies during the Asian session due to seeing Australia’s trade balance rise more than expected during May.

Exports were up, which for a export driven country is seen as a real positive for the Australian economy and indeed the Australian Dollar. We only really saw small gains for the Australian Dollar off the back of this, but it was welcomed by those with Australian Dollars to sell in the near future, after seeing AUD exchange rates drop off earlier in the week following the RBA interest rate decision and monetary policy statement.

The RBA had set a more dovish tone than had been expected, both on the economy going forward and on future fiscal policy changes, this led to Australian Dollar weakness immediately after the release and a little further weakness during trading yesterday.

Rest of the week for AUD exchange rates?

Tomorrow we have a little economic data out from China and also Non-Farm Payroll data out from the U.S.

Chinese data can impact the Australian Dollar quite heavily due to the volume exported over there and the Non-Farm data can affect all major currencies as it will alter global attitude to risk. Currently, the Australian Dollar is perceived as a riskier currency so any slight alterations in risk sentiment worldwide can impact Australian Dollar exchange rates.

With so much going on in the market at present, it is extremely important that if you have a currency exchange to carry out in the coming days, weeks or months then it is imperative that you have an experienced and proactive currency broker on your side. Here at Australian Dollar Forecast we can not only help you with up to the minute market data but we can also work with you to help you time your transfer and to get the best rate when you do carry it out.

Feel free to contact me (Daniel Wright) the creator of this website should you wish to receive more information on our services and I will be more than happy to get back to you as soon as I can. You can email me on djw@currencies.co.uk and I look forward to speaking with you.

Australian Dollar getting shaky due to a number of factors (Daniel Wright)

The Australian Dollar is starting to feel the pinch a little in recent trading as a number of factors are leading to a little Australian Dollar weakness.

This week so far has already given us the news that China has had a credit rating downgrade by rating’s agency Moody’s due to concerns of the spiralling debt situation over there. On top of this, investors are rushing to second guess when we will see the next interest rate change over in America and this will also be of key importance to the Australian Dollar too.

Why the rate change is so important is due to where investors will seek to hold their funds. At present Australia presents a solid interest rate compared to many other parts of the world however the U.S are slowly catching up and this is when risk perception will come into play. The closer the U.S interest rate gets to the Australian interest rate you will start to see a flow of money leaving the Australian Dollar and moving into the U.S Dollar as investors will feel that the U.S is a more stable and safer bet for their funds, so they will feel more comfortable folding funds in USD if interest rates are fairly close if not the same.

Regarding the issue with China, any bad news from China tends to be negative for the Australian Dollar as Australia exports so many goods to China so it will have an impact on the Australian economy eventually. Rising debt in China has been a concern for a long time and personally I would not be overly surprised to see Chinese debt hit the headlines on a larger scale again soon.

With this in mind we may see a tricky period for the Australian Dollar come up so there could be some great opportunities for anyone looking to buy Australian Dollars in the near future.

If you are looking to buy or sell Australian Dollars and you would like my assistance then feel free to contact me (Daniel Wright) personally on djw@currencies.co.uk and I will be more than happy to help you. Not only can the company I work for offer highly competitive rates of exchange but we are also extremely proactive in helping our clients with the timing of their exchange. If you feel you are not getting this assistance with your current broker or indeed your bank then feel free to email me directly and I will be more than happy to get in touch.

 

GBP/AUD Rates Remain Range-Bound – Where Next for the Pound? (Matthew Vassallo)

GBP/AUD rates have remained range-bound over recent days, with the Pound struggling to break through 1.65.

The AUD has found plenty of support around this level, despite the Pound gaining a foothold against most of the major currencies since last week’s historic events.

It seems as though investors are still airing on the side of caution when it comes to the UK economy and its prospective future prosperity following the start of our separation form the EU.

It’s a strange time in the currency markets however, as investors and clients alike must start to look forward following the triggering of Article 50 last week. Many clients are asking me how the Pound will react over the coming weeks and I still feel that any clients holding Sterling should be looking for short-term market opportunities whilst the current uncertainty remains.

Its seems as though so much talk and focus was centred around the UK’s Brexit since the unexpected referendum result last June, that people almost forget that there was an active market prior to this point. It does feel like there is something of anti-climax about the whole situation but I’m convinced that talk of Brexit and the negotiations between the UK government and EU regarding terms of the separation will still fill column inches and dominate headlines for months, if not years to come.

However, we also need to move ourselves away from the topic to some extent, as the markets will start to look at other factors and it be that economic data (which is predominantly what drives the currency markets) will start to hold more weight again as we move forward.

Personally, I still feel that the investor confidence in the UK economy is not strong enough to sustainably push GBP/AUD rates towards 1.70. However, any positive developments regarding the UK’s separation and any deals still in place with the EU will probably benefit those clients holding Sterling and inadvertently weaken the AUD as a result.

The AUD has performed well against the Pound for some time but with China’s demand for their huge reserves of iron ore slowing and high labour costs in the mining industry putting pressure on the Australian economy, now could be the time to sell any AUD positions.

Client should to take advantage of what are extremely attractive levels, especially when you consider the history on the pair and not gamble on what has become an increasingly volatile market.

If you have an upcoming GBP or AUD currency transfer to make, then we can help you navigate this turbulent market by keeping clients up to speed with all the latest developments regarding Brexit and beyond.

If you would like us to monitor the market for you ahead of a currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk.

 

What to expect for Australian dollar buyers and sellers (Dayle Littlejohn)

In recent weeks the Australian dollar has been taking a hit and many economists believe this trend will continue throughout 2017.

At present investment remains in Australia as interest rates remain high. However with forecasters suggesting that inflation will remain low this could force the Reserve Bank of Australia to cut interest rates early next year, which would lead to an Australia dollar sell off.

Couple this with the US Federal Reserve deciding to hike interest rates to 0.75% from 0.5% Wednesday evening, throughout next year I wouldn’t be surprised to see investors move out of the Australian dollar and into the US dollar.

Another factor this could lead to further Australian dollar weakness next year is the slowdown in China. Forecasters believe growth will slow to 6.4% down from 6.7% in 2016.

If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Australian Dollar continues to remain strong as RBA throws up no surprises (Daniel Wright)

The RBA didn’t throw up any big surprises to the markets in trading today as interest rates were left on hold and there were less signs than usual of any future interest rate reductions… Former Governor Glenn Stevens did seem to like leaving a few hints out there for future policy just to keep tongues wagging between investors.

The Australian Dollar has surged against the Pound in recent months following the referendum, the announcement by Theresa May on Sunday that the U.K would be progressing with Article 50 by the end of March and just the general way that the Pound has fallen out of fashion  over the past few months.

With this in mind my personal view is that this is a fantastic time to be exchanging Australian Dollars into Sterling and the key in these scenarios is not to get too greedy as there are plenty of issues out there that may turn the tide back.

All you need to do is look at the issues in China, the potential of an interest rate hike in the U.S and the potential that once his feet are under the table that new Governor Philip Lowe may have larger plans than he has hinted at and we could well see this trend turn around fairly quickly.

I personally have assisted hundreds of clients bring Australian Dollars back into Sterling over the past couple of months and would be more than happy to help you too. Not only can we achieve much better rates of exchange than the banks but it is rare we cannot significantly better other well known brokerages too so it is well worth getting in touch with me if you find this website useful.

You can email me (Daniel Wright) creator of this site 5 years ago on djw@currencies.co.uk with a description of your requirements and I will be more than happy to contact you personally to discuss the options available to you.

Economic data to impact the Australian Dollar this week (Daniel Wright)

We have plenty of data out this week to move Australian Dollar exchange rates both from Australia and China.

On Tuesday morning Australian time we have inflation data from China and business confidence from Australia, both of which may lead to a volatile day of trading ahead.

Wednesday brings consumer confidence figures, home loan data and then Governor of the RBA Glenn Steven’s speech in the latter part of Wednesday morning’s trading.

Thursday is a little quieter with new loans and money supply data from China early in the morning and then on Friday we have Chinese Retail Sales, urban investment and industrial production.

The Australian Dollar has had a good run of form against Sterling lately, almost breaking through the 1.70 mark as I write this, and personally I would not be surprised to see rates come back up to the mid 1.70s this week however this does depend on post referendum data that we see released from the U.K as the next few weeks will show just how big the immediate impact was.

Here at Australian Dollar Forecast we do not only offer market information but we also work for a huge currency brokerage in the U.K with a big buying power, meaning we can get our clients extremely good rates of exchange. If you would like to get a quote, speak about a pending currency exchange or just to get some more information on our service then feel free to email me (Daniel Wright) the creator of this site and I will be more than happy to get back to you personally. You can email me on djw@currencies.co.uk and I will aim to get in touch as soon as I can.

GBP/AUD Rates Flat Following BoE Interest Rate Decision (Matthew Vassallo)

GBP/AUD rates have levelled out somewhat following last week’s decision by the Bank of England (BoE) to keep UK interest rates on hold at 0.5%. This, alongside the political stability bough about by Theresa May’s appointment as Prime Minister, has helped Sterling gain some much needed market support. GBP/AUD rate shave spiked back above 1.75 at today’s high and whilst the Pound clearly remains under pressure, at least last week’s developments have helped to curb any further aggressive loses in the short-term.

Whilst I do not anticipate a sustainable recovery above 1.80 for the Pound under current market conditions, I would be extremely tempted to secure any short to medium-term AUD sell positons, due to the huge improvement we’ve seen over the past few months. GBP/AUD has always been a relatively volatile currency pair and recent events, both politically and economically, have only enhanced this trend. The Pound has suffered due to the Brexit result and this uncertainty is likely to hang over the UK economy for many months if not years to come and investors risk appetite has diminished as a result.

Despite the current downturn in the UK economy I am still wary about putting too much faith in the AUD, which is so reliant on Australia’s economic wellbeing and trade links to China, that any negative domino effect can knock it of course extremely quickly. The AUD remains fragile and with so much uncertainty and the ‘cloak & dagger’ scenario that surrounds the Chinese economy, I wouldn’t be relying on the current trend continuing indefinitely.

If you have an upcoming GBP or AUD currency requirement and 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

 

GBP Remains Under Pressure (Matthew Vassallo)

GBP/AUD rates recovered slightly during today’s trading but the general trend has been in line with other currency pairs. Sterling is struggling against a wave of negative feeling and with the markets still trying to come to terms with the UK’s recent decision to leave the EU, I do not anticipate a shift in market perception under current conditions. The Pound has suffered due to a lack of investor confidence and as the table above shows, we have seen Sterling lose a considerable amount of value over the past month.

With GBP/AUD rates now sitting close to a two-and-a-half-year low, those clients holding AUD have a perfect opportunity to secure any short-term positons. With the Australian economy still showing signs of fragility and concern over the current growth forecasts and rising unemployment in China, we may find that these levels do not last for long. I still feel that longer-term Sterling is likely to find support and based on recent history the AUD has a lot of downside risk, another reason it may be prudent to protect any AUD positions rather than gamble on another major spike.

We also need to consider the political situation in Australia, which is also remains very uncertain. Whilst it looks like there will be a hung parliament, votes from around the country are still being counted and any uncertainty surrounding who will be in power and what future policies they may implement could have a detrimental effect on the AUD’s value.

If you have an upcoming GBP or AUD currency requirement and 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 Dollar exchange rates remain volatile – Chinese data next out early Monday (Daniel Wright)

With the Australian Dollar having a better week against most major currencies, most notably the Pound all eyes now turn to next week and Chinese data that we have due out early on Monday.

Chinese data has a large impact on the Australian Dollar and recently although things have been fairly quiet in terms of the Chinese stock market, Chinese data has still not been particularly great so another poor figure would not be a big surprise.

For those looking to exchange Australian Dollars for Sterling or to buy Australian Dollars with the Pound then there is no avoiding the referendum in the U.K on 23rd June. Expectations are for the U.K to remain within the EU however a closer than expected vote would not be a great surprise. The general view is that we may see a little weakness for the Pound in the lead up to the referendum and then should remain win then the Pound may then suddenly gain a lot of strength back.

We also need to remember that there is an election coming up in Australia which has the potential to weaken the Australian Dollar  too so we have no doubt here that we are in for a rocky period coming up.

If you are in the middle of buying or selling a property overseas or if your business has upcoming requirements then you need to make sure you have a proactive broker on your side. There are options available to you including limit orders, stop losses and forward contracts, all of these can help you minimise your currency risk in this difficult market.

We here at Australian Dollar Forecast all work for one of the largest currency brokerages in the U.K with access to exceedingly competitive and rarely beaten rates of exchange, along with awards for our customer service. If you feel that we may be beneficial to you then feel free to get in touch with me (Daniel Wright) the creator of this site many years ago and I will be more than happy to help you personally. We deal with bank to bank transfers ranging from £1000 to multi-million pound exchanges and will be able to explain all of the options to you in clear and easy to understand terms. Email me today on djw@currencies.co.uk with a description of what you need to do and a contact number and I will contact you at the earliest opportunity. You can also call our trading floor hotline during trading hours on 01494 787 478.