Tag Archives: currency transfer
Could the Pound make further gains this week against the Australian Dollar?
According to many sources the Australian Dollar could be under real pressure in the long term as the Chinese economy continues to slow and the US Federal Reserve continues on their path of raising interest rates.
The Fed has already raised rates 7 times since December 2015 and have already increased rates twice during the course of this year as well.
The Australian Dollar has hit its lowest point vs the US Dollar in twelve months and this has also been caused by the ongoing Trade Wars between the US and China.
The Australian bond yields have now dropped below that offered by US Treasuries and this could get even worse as as the Fed continue their path of raising interest rates later this year.
At the moment the view from the Reserve Bank of Australia is that they are likely to keep interest rates on hold for a long period of time and this is why the Australian Dollar has weakened recently heading in the direction of 1.80 recently.
With the Bank of England due to meet tomorrow afternoon I think the central bank will keep interest rates on hold once again with a 7-2 split but with the UK showing some very positive Retail Sales earlier this month I think we could see some signs that an interest rate hike could be coming sooner than the markets expects and if this is the case we could see the Pound make some further gains vs the Australian Dollar towards the end of the week.
If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian teh@currencies.co.uk
AUD Forecast – RBA Minutes Indicate Interest Rate Hike Unlikely (Matthew Vassallo)
The AUD has come under some pressure against Sterling of recent days, although on-going Brexit concerns are still handicapping any major advances for the Pound.
GBP/AUD rates moved close to 1.80 overnight and despite the AUD finding plenty of support around this level, it seems as though the Reserve Bank of Australia (RBA) minutes released overnight have had an impact on market sentiment.
The AUD had been performing solidly of late, with the Pound struggling to make any impact as negotiations over Brexit continue to move at a snail’s pace.
With the UK government split on its preferred strategy, the Pound has found little market support over recent weeks.
However last night’s RBA minutes, which give investors a key insight into the central banks current economic stance, seems to have dampened some of the recent positivity.
They suggested that the current record low interest rates in Australia were helping to support the economy, an indication that they were unlikely to hike the base rate in the short-term.
The most poignant piece of information however, referenced a concern that any further increase in value for the AUD would lead to a slower rise in inflation and economic growth. This meant that the central bank may well look to “jawbone” the AUD, which is when they will look to talk down the currency’s value, without introducing any official devaluation methods.
This in turn has caused investors to sell-off their AUD currency positions, which is probably why we have seen the AUD weaken this morning.
In the short-term concerns over Brexit will continue to shackle any spikes in value for Sterling, with the AUD likely to find an element of protection around the 1.80 threshold.
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.
AUD Forecast – Fears Over Brexit Continue to Support the AUD (Matthew Vassallo)
It’s been a quiet start to the week for the AUD, following yesterday’s bank holiday in Australia.
GBP/AUD rates have remained range bound over recent days, with little market movement despite the developments in the Korean peninsula.
Almost every headline this morning relates to the historic meeting between President Donald Trump and Korean leader Kim Jong-Un.
Whilst we are still waiting for the full details of the deal that has been put in place, both Trump and Kim confirmed that they had signed a document that has committed North Korea to complete denuclearisation.
Whilst this deal has no direct impact on the Australian economy, the repercussions are likely to have ripple effects across the global economy.
The AUD has performed well of late, particularly against its GBP counterpart, finding plenty of support around the current levels. Whilst GBP/AUD are trading around 1.76 this morning the pound has not threatened to make any sustained move towards 1.80 over recent weeks.
Sterling continues to be handicapped by concerns over Brexit and with today’s House of Commons debate will be followed closely by investors, a positive resolution in the short-term seems optimistic at best.
This uncertainty is helping to support the AUD around the current levels and with yesterday’s poor UK Manufacturing data a real for cause for concern, I am not anticipating a major shift in Sterling’s favour over the coming days.
If you have an upcoming GBP or EUR 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.
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.
AUD Forecast – RBA Keep Interest rates on Hold at 1.5% but Central Bank Remains Upbeat (Matthew Vassallo)
Anyone with an upcoming AUD currency exchange to execute, will need to keep an eye on a number of key economic data releases this week.
Monday saw the release of the latest Retail Sales figures, which came in at 0.4% and above the markets predicted result. This helped to solidify the AUD’s position against a host of major currencies, including the Pound. If it wasn’t for some better than expected UK Construction data, we may have seen the AUD make further inroads back towards 1.70 against Sterling, but as it stands currently, GBP is finding a fair amount of support around 1.74.
The market data is coming thick and fast this week and yesterday’s Reserve Bank of Australia (RBA) interest rate decision, would have been of key interest to investors, who were hoping to predict the AUD’s next movements.
As expected the central bank kept interest rates on hold and at record lows of 1.5%. This in itself does not tell the whole story, as this decision was widely anticipated and likely factored into the AUD’s value prior to last night’s release.
It was the RBA’s subsequent monetary policy statement that was always likely to hold he most weight with investors and the RBA, somewhat typically some may say, remained optimistic regarding their current economic outlook.
They expressed confidence in the economies ability to extend its 26-year run without entering a recession, citing stronger exports and government spending as the reasoning behind this.
This positive stance will most likely help to curb any short-term losses for the AUD but has yet to make any major impact during today’s trading.
With much of the medias focus currently on President Trump and the prospective trade tariffs that he is looking to impose, fears over a slowdown in global trade continue to grow.
If this occurs it will most likely put pressure on commodity-based currencies such as the AUD and as such, investors are most likely remaining cautious regarding their approach.
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.
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.
Jobs data to cause movement this week for the Pound vs the Australian Dollar
The Pound vs the Australian Dollar has been trading either side of 1.80 on the Interbank level during the last few days.
The Australian Dollar has gained by as much as 5 cents vs the Pound which appears to have strengthened against the Pound after a combination of negative data from the UK.
The Bank of England confirmed last Thursday that they would be again keeping interest rates on hold with a 7-2 split in favour of keeping rates the same and this caused the Pound to fall against a number of different currencies.
It wasn’t just the announcement itself but also the downgrading of the recent UK’s growth forecast which caused the Pound to struggle and later on this morning we have a number of key economic indicators in the form of both Average Earnings data as well as UK unemployment levels.
Both have been very impressive in recent times and so another positive announcement could see the Pound improve against the Australian Dollar later today.
On Thursday the focus will return to the Australian jobs market with Australian unemployment data combined with the Participation rate. The expectation is for 5.5% unemployment so anything different is likely to cause a lot of movement.
Personally, I think we could see GBPAUD rates go in an upwards direction if the data from the UK is positive this morning.
Having worked for one of the UK’s leading currency companies for 15 years I am able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.
For a free quote then contact me directly by calling 01494787478 and asking for Tom Holian when calling or email me directly with a brief description of your currency requirement and I look forward to hearing from you.
Tom Holian teh@currencies.co.uk
