Tag Archives: currency transfer
Australian Growth data causes Investor Concern (Daniel Johnson)
Pound to Australian Dollar Forecast
The Australian Dollar has suffered of late due to several contributing factors. The most significant catalyst for the fall in Australian Dollar value is the US/China trade war. Australia is heavily reliant on China purchasing it’s goods and due to this any slow down in growth in China will have an impact on the Australian Dollar.
The Trump administration has placed significant tariffs on Chinese goods and China has retaliated with it’s own tariffs. The trade war is set to escalate and could be ongoing which does not bode well for the Aussie. Iron ore is Australia’s primary export to China and at present demand remains healthy which is good news for the Aussie, that is not to say this situation will last however.
Due to global economic uncertainty investors are choosing to shy away from riskier commodity based currencies such as AUD in favour of safe haven currencies such as the Swiss Franc and the US Dollar.
There are economic problems down under such as consumer spending and the cost of living in high wage growth areas such as Sydney and Melbourne. The Reserve Bank of Australia (RBA) took the decision to cut interest rates this month to 1.25% and there is the potential for further cuts.
The Australian economy is growing at its slowest rate in almost a decade, which has fuelled speculation surrounding how long Australia will sustain its run of over 27 years without a recession.
Despite the situation down under I believe the problems in the UK outweigh that of those down under. We currently have no PM and are in complete Brexit limbo. If Boris gets in the probability of a no deal could increase as he will be using this scenario as a bargaining chip to get a better deal from Brussels. A no deal is the investors worst fear and has the potential to cause further woes for Sterling.
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.
Will the Pound improve against the Australian Dollar?
The Pound has this week fought back against the Australian Dollar. With the RBA having cut interest rates the focus now appears to be on Australian unemployment. The figures showed a problem with the jobs market down under which signals that the Australian economy is under some real pressure at the moment.
The average house price has also been falling in Australia and this is beginning to weigh heavily on the value of the Australian Dollar.
Next week the focus will turn back to the Reserve Bank of Australia when the latest minutes are released.
This will provide an insight as to what the central bank are looking to do in the near future concerning monetary policy.
I think there are more interest rate cuts planned this year so if the RBA gives hints that there may be more coming in the near future I think we could see GBPAUD exchange rates move in an upwards direction.
Therefore, if you’re planning to buy Australian Dollars in the near future it may be worth waiting until the middle of week to take advantage of any potential spikes in the market.
The other news affecting the rates is that of the UK’s leadership election. Currently Boris Johnson appears to be the front runner after winning the first round conclusively. If he manages to get into power this could potentially give the Pound a boost against the Australian Dollar as it will provide some certainty at least in the short term.
I have worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers and I am confident of being able to save you money when buying or selling Australian Dollars.
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
Australian dollar forecast; Will the RBA cut rates again?
The Reserve Bank of Australia cut their base interest rate recently which has seen the Australian dollar weaker in recent weeks. Interestingly, the currency itself did not weaken massively on the news of the cut to historical lows last week, partly because the market was expecting it. It appears to me that the future, we might well in find the RBA forced to cut rates again.
My overall belief is that the factors which contributed to a weaker Aussie dollar in 2019 will by and large remain. A key factor in all of this is of course the trade wars with Donald Trump putting pressure on the global economy, in particular the Chinese economy which is a major customer for Australian exports.
The resulting slowdown globally is only going to continue in my opinion, this will surely keep pressure on the RBA and perhaps force their hand again down the line. It is probably worth pointing out that the Australian economy has been through one of the longest periods of economic growth in history in the Western world. Economic history suggests that at some point that growth will struggle with tougher economic times and the current trajectory and stagnation seems tricky to just shake off with just one interest rate cut.
There is important economic news for Australia this week with the release of the latest news from the Australian Bureau of Statistics, releasing more detailed information on Australian Unemployment data. This has been a key component of decisions on interest rates, as the RBA grapples with falling Unemployment and also falling Inflation.
The future looks far from straightforward for the Australian dollar, clients with a position to buy or sell Australian dollars might benefit from a quick review with our team, to get the latest news and information on their options and the best strategy to maximise any transfers.
Shock Election Win for Australian Coalition Party & Breakdown in Cross-Party Brexit Talks Dominate the Headlines (Matthew Vassallo)
GBP has found some welcome support against the AUD over the past 24 hours, helping to curb any further losses after last week’s downturn.
Investors sold off their GBP positions in haste following a breakdown in cross-party Brexit talks. With both the Conservatives and Labour laying the blame for the breakdown at each other’s feet, investors’ confidence in the UK governments ability to achieve Brexit via a smooth transition, has quickly evaporated.
This negative feeling transpired and caused Sterling to lose over three cents in value against its Australian counterpart, with the Pound falling below 1.84 towards the end of last week.
Whilst the current outlook regarding the UK’s Brexit is still cloaked in uncertainty, the Pound has at least found a level of support during the early party of the trading week. GBP moved back above 1.85 overnight at its high but fell again as the results of the Australian election were finalised.
The very unexpected result was confirmed, and the expected Labour did not materialise. This went against the vast majority of the opinion polls, which for almost two years prior to the general elections, put the Labour party ahead of the more conservative Coalition, led by the now Prime Minister Scott Morrison.
How the new government’s policies will affect the Australian economy will be realised over time but for now the markets have taken a cautious approach to the new regime and with the Brexit undertone likely to continue to drive market sentiment and much of Sterling’s value, it may be the at the Pound struggles to make any sustainable inroads back towards and over 1.90 against the AUD in the short-term.
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 nineteen 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.
Australian dollar forecast : Will the Australian dollar rise or fall in May?
My view is that the Australian dollar could be on the back foot now as investors become more concerned about the RBA (Reserve Bank of Australia) cutting interest rates. The RBA will meet next Tuesday and there are some who think there is an increased chance of an interest rate cut, owing to some lower inflation numbers released in April. We also have the Australian election due on the 18th, the Australian dollar could therefore be in for a busy month.
The RBA has been in a holding pattern on interest rates for quite some time despite various changes in sentiment since 2016 when the RBA last cut rates. There has been continued speculation the RBA would need to cut again following increased concerns over the economic outlook in Australia, following the trade wars between the US and China.
With the trade wars concerns gently fading under the impression the two sides will strike an agreement, there has been less pressure on the Aussie dollar in recent weeks but the backdrop of such issues looks like it will continue to weigh on sentiment. Even if the US and China do pass a new deal, it is clear that global trade has changed forever under Trump, and the Aussie dollar as a currency so closely linked to global trade, will continue to be influenced by this news.
For me, May is more about the domestic issues facing Australia with low inflation prompting analysts to believe a cut is the way forward for the RBA. Whilst I am not overly confident the RBA will cut, I expect they will comment that they may well do in June, which I believe will weaken the Australian dollar.
The election on the 18th May is also a reason for concern in May, with the Labour party looking to perform well which could well have a negative outcome for the Australian dollar, since they have numerous plans to spend more. The election is likely to be a very topical even over the next 2 weeks and may well sway the Aussie dollar, increased volatility should be expected.
May looks set to be a very busy time for the Australian dollar so if you have any transactions that you are considering, please do not hesitate to contact me to discuss the latest news and forecasts, which will influence the value of your transfer. I work as a currency broker and can offer guidance as to some of the best strategies to consider when making an Australian dollar currency transfer.
Thank you for reading and please contact me directly to learn more on jmw@currencies.co.uk
Jonathan Watson
AUD Forecast – RBA Keep Interest Rates on Hold at Record lows as GBP Finds Support Overnight (Matthew Vassallo)
GBP/AUD rates have spiked back above 1.84 overnight, as the Pound continued its recovery following last week’s losses.
Sterling was under considerable pressure following UK Prime Minister Theresa May’s failure, to once again get Parliamentary approval for her Brexit deal. This was the third time she has failed to gain the necessary support from MP’s and investors reacted to this by selling off their GBP positions, causing a sharp dip in value for the Pound.
This downturn inadvertently boosted the value of the AUD, which has had its own problems recently. The AUD saw its value increase by over four cents against the Pound, hitting 1.8290 at the high.
At this stage it seemed as though GBP/AUD exchange rates could be heading back towards 1.80, with the markets seemingly losing faith in the UK’s ability to find some common ground over Brexit, with MP’s unable to agree upon the best way forward in regards to a Brexit deal with the EU.
With further twists likely in this ongoing saga, those clients holding GBP may look at this week’s upturn as an opportunity, with the uncertainty over the UK’s final Brexit position likely to hamper any significant upturns for Sterling.
Looking at the Australian economy and the Reserve Bank of Australia (RBA) met last night and as anticipated kept interest rate son hold at the current record lows of 1.5%.
Like other commodity based currencies, the AUD has struggled to impose itself of late, with a slowdown in global trade causing investors to shy away from riskier assets such as the AUD. With the Chinese economy also showing signs of a longer-term slowdown, due for the most part to the on-going trade stand-off with the US, the outlook for the Australian economy remains dovish.
If you have an upcoming GBP or 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 nineteen 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.
Pound to Australian Dollar rate today and what will happen to rates after 29th March?
The Pound has been challenging 1.87 on the Interbank level against the Australian Dollar over the last few days but has struggled to hold on to its gains for any sustained period.
Sterling has made the gains owing to a number of reasons but arguably the two most important factors affecting the Pound vs the Australian Dollar is that of China and Brexit.
The impact of China on the Australian Dollar
China appears to be back tracking on its arrangements with the US in terms of its trading position and this is likely to impact trade between China and Australia. The Trade Wars are still going on between the two superpowers and this is causing a problem for the Australian Dollar.
China is Australia’s largest consumer of its natural resources and as Australia is heavily influenced by commodity prices as well as demand from the world’s second largest economy any reduction in demand will often tend to weaken the Australian Dollar and this appears to be what is happening at the moment.
The impact of Brexit on the Pound to the Australian Dollar
Turning the focus back towards what is happening in the UK and it is Brexit that is dominating all the headlines at the moment. The Speaker of the House John Bercow recently announced that the Prime Minister will not be allowed to hold another ‘meaningful vote’ if the new deal is very similar to that already proposed which was voted against recently.
With just ten days to go before the UK is set to leave the European Union things are still uncertain as to what will happen next. The likelihood is that Brexit will be postponed but for how long is the most important question.
Theresa May is due to travel to Brussels to discuss the terms of any delay but all the 27 members of the European Union will have to agree to any proposed extension period so there is still a risk to the value of the Pound.
I personally think that a no deal Brexit will be avoided and an extension will be granted and once this happens depending on the length of the delay I think this could provide the Pound with some real support against the Australian Dollar.
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
