Tag Archives: dollar

Australian Dollar feels the pinch – Quiet end to the week for economic data (Daniel Wright)

Overnight the Australian Dollar has found life rather tough, seeing losses against most major currencies, following slightly less dovish comments from the RBNZ (Reserve Bank of New Zealand) in their latest interest rate decision and statement.

This news sent the New Zealand Dollar sharply higher, which in turn weakened the Australian Dollar, making it cheaper to buy.

For the coming week or so, Australian Dollar movements may be widely based on risk sentiment and economic news from around the world, this is due to the fact that their really is very little data of note that will move the markets before the end of the month.

Whilst this is the case we must remember that in the financial markets many surprises occur, and typically it will be just when everyone lets their guard down and assumes the rate will remain stable for a short period of time that something comes out to cause quite the opposite!

In my opinion I can still see a small period of Australian Dollar weakness coming up, this is due to the slow down we are seeing in China, attitude to risk diminishing around the globe and interest rates in the U.S slowly creeping up.

In times of global uncertainty and when investors have a slightly less riskier attitude you do tend to find that currencies such as the Australian Dollar, New Zealand Dollar and South African Rand will weaken, where as the perceived ‘safe’ options such as the U.S Dollar and Swiss Franc will gain value. As i’m sure many of our readers will know there are plenty of problems around the world at the moment both economic and political so we are currently in choppy waters for investors.

If you have a currency exchange to carry out involving the Australian Dollar into any major currency then I can help you, both with the timing of the exchange and getting the best rate when you come to book it out.

Should you feel I could be of use then feel free to contact me (Daniel Wright) the creator of this website on djw@currencies.co.uk with a description of your needs and I will be more than happy to help you personally.

 

 

Markets await news from the U.K elections – This will impact AUD/GBP exchange rates (Daniel Wright)

As we await news on just how the U.K election will pan out, Sterling has remained fairly flat against the Australian Dollar throughout trading today. It had looked like Sterling would be pushing up and above the 1.75 (0.5714) mark in the past week or so but what we have seen is a slight shift in momentum and the Labour party clawing back seats in the polls.

This has caused uncertainty for the Pound which has led to the Australian Dollar making back ground against it and coming down to test the 1.70 (0.5882) level.

It does appear that if you trust the bookies odds (which were totally wrong for the referendum) we will be seeing a conservative majority and that will more than likely lead to Sterling strength, but we must also bear in mind that this will also increase the likelihood of a harder brexit so the markets could actually see this the other way and push the Pound back down.

All in all we have a very interesting 24 hours ahead for anyone looking to buy Australian Dollars with Sterling or to send Australian Dollars back into Pounds, as we could face a lot of volatility and some fantastic trading opportunities in the hours ahead.

if you are in the position where you may need to make an exchange either in the imminent future or the coming weeks and months then it makes sense to have an experienced and proactive currency broker on your side.

I have been helping clients make large exchanges to and from Australia for nearly ten years now and make sure that not only do they get the very best exchange rate but they are also kept well aware of market movements in their favour or against them.

If you feel I would be of assistance to you then feel free to contact me (Daniel Wright) personally on djw@currencies.co.uk and I will be more than happy to get in touch and help you put together a plan of action for your exchange.

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.

 

Pound to Aussie Dollar rate continues to fall over UK economic outlook concerns, will the downward trend continue? (Joseph Wright)

The Pound to Aussie Dollar exchange rate fell into the 1.73’s earlier today as the downward pressure upon the Pound continued.

Despite still trading in the 1.70’s the GBP/AUD pair has fallen from its 8-month high as the currency is falling against all major currency pairs, with the drop against some currencies being steeper than others with GBP/EUR’s fall down to a 5-week low bring one of the standout movers.

The main reason for the softening to Sterling’s value can be attributed to the Inflation rate within the UK and its knock on effects.

The rate of Inflation has risen to its highest level since September 2013 and this is significant as it’s come at a time when UK wage growth is stagnating. Inflation is growing at a higher rate than wage growth which is likely to negatively impact consumer spending within the UK, which is an important aspect of the UK economy.

This situation looks gloomy for the Pound moving forward as the Bank of England has ruled out a rate hike in the short term future, especially with a general election just around the corner.

I wouldn’t be surprised to see the GBP/AUD rate dip below 1.70 in the short term future, unless there’s a reversal in the steep rise of living costs within the UK.

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.

Australian Dollar finding life tough as risk sentiment decreases (Daniel Wright)

We have seen the Australian Dollar lose ground against numerous currencies over the past week or so as we have experienced a slight sell off in the perceived ‘riskier’ currencies, such as the Australian Dollar, New Zealand Dollar and South African Rand.

Investors are finding life tricky at present, with the goings on in America and various economies reporting fairly bad figures of late, it does seem that we are seeing an unwinding of carry trades along with a general sell off, leading to Australian Dollar weakness.

Carry trading is a process whereby an investor borrows money in a currency with a very low interest rate and then shifts that money over to a currency with a very high interest rate, making their return on the difference. As you start to see the Australian Dollar weaken off you also get this gather momentum as investors reverse or unwind these positions to protect themselves from adverse movement and losing the profit they have built up.

We have very little left to come out in terms of economic data from Australia for the rest of the trading week but for those looking to carry out an exchange involving GBP you should be aware that today the U.K has what has been touted as ‘Super Thursday’ where they will have the release of Industrial and Manufacturing production, trade balance, the Bank of England interest rate, inflation report and growth estimates so be prepared for some fairly volatile exchange rate movements as the day progresses.

If you have any Australian Dollars to buy or indeed sell then it is well worth getting in touch with us here at Australian Dollar Forecast. Not only to we aim to provide up to date market information but we also all work for on of the top foreign exchange brokerages in the U.K. Even if you are based in Australia we can still help you too, and we pride ourselves on being able to better the prices of all of our competitors, along with offering a high level of customer service too.

Feel free to get in touch with me (Daniel Wright) if you would like to get a quote to compare with your current brokerage, or indeed your bank and I will be more than happy to contact you personally. You can email me on djw@currencies.co.uk and I  will be in touch as soon as I can.

Australian Dollar losing ground against most major currencies (Daniel Wright)

We have seen the Australian Dollar lose ground against most major currencies this week and this trend may well continue as the week progresses.

With Donald Trump bringing in new tariff’s for Canada on trade this has led to concerns that we may see a similar situation for many other economies which could really put further pressure on the Australian Dollar as it would initially be seen as a negative for the Australian economy.

We had slightly weaker than expected inflation data for Australia earlier in the week, and we have more to be released tomorrow and although markets are expecting a small improvement, I would be surprised to see any large gains for the Australian Dollar this week as I feel the trend is well and truly against it at present.

Tomorrow we also have GDP (Gross Domestic Product) figures over in the U.S and this can have an impact on all major currencies as it has an affect on global attitude to risk. GDP is essentially how much the economy grew or shrank during a specific period and the reason the U.S figure is so key for the Australian Dollar is due to the fact that it will be key for their decision on their next interest rate change, and should the U.S hike interest rates again I would expect to see the Australian Dollar weaken further.

If you put yourself in the position of a large investor, you would more than likely prefer to hold funds in the less risky USD rather than the more volatile AUD and interest rates for the two are getting closer, the closer they get the larger the flow out of AUD and into USD, hence making the AUD weaker over time.

If you have the need to buy or sell Australian Dollars for emigration, property or business requirements and you would like my assistance then feel free to get in touch with me (Daniel Wright) directly on djw@currencies.co.uk .I regularly have clients contact me who find that not only can they save money and get a better rate than their current provider but also that our service is exceedingly smooth too.

Australian Dollar starting to weaken off as interest rate hike chances start to fade (Daniel Wright)

The Australian Dollar is having a slightly rocky time of it at present, due to investors and speculators starting to reverse their opinion that they expected an interest rate hike from the RBA fairly imminently.

The original expectation that the interest rates may rise was due to the economy being in good form and the housing market also rising fairly rapidly, an interest rate rise would help to slow this slightly as it makes it more expensive to get a mortgage therefore should hold demand back a little.

It does appear now that with iron ore prices dropping near to the lows of the year and concerns about China creeping back into the market we may have a slightly shaky period ahead for those holding Australian Dollars, and that Australian Dollar exchange rates may fall in the coming weeks, making the Australian Dollar cheaper to buy.

There are now speculators and investors that expect an interest rate cut from the RBA before the end of the year, this would lead to a large drop in the value of the Australian Dollar. An interest rate cut is generally seen as negative for the currency concerned and a rate hike seen as a positive.

With the decreasing difference between U.S and Australian interest rates too, this is having more of an impact than it usually would as investors would rather have funds sat in USD than AUD as it is perceived as a less riskier currency.

If you have any Australian Dollars to buy or indeed sell then it is well worth getting in touch with us here at Australian Dollar Forecast. Not only to we aim to provide up to date market information but we also all work for on of the top foreign exchange brokerages in the U.K. Even if you are based in Australaia we can still help you too, and we pride ourselves on being able to better the prices of all of our competitors, along with offering a high level of customer service too.

Feel free to get in touch with me (Daniel Wright) if you would like to get a quote to compare with your current brokerage, or indeed your bank and I will be more than happy to contact you personally. You can email me on djw@currencies.co.uk and I  will be in touch as soon as I can.

Australian Dollar feeling the pinch as Antipodean currencies have a poor start to the week (Daniel Wright)

So far the Australian Dollar has not had the greatest start  to the weeks trading, seeing losses against the Pound and  Sterling has pushed above and through the 1.65 (0.6060) mark today.

It does appear that the trend for AUD/GBP has now turned around a little, however the next 24 hours will be key for where it heads next with article 50 (the start of the brexit process) officially being triggered in the U.K tomorrow.

This will be a key factor for anyone looking to carry out a currency exchange involving either the Pound or Australian Dollar, as it will effectively start divorce proceedings between the U.K and the EU.

Global risk appetite appears to have fallen away a little too, as Antipodean and commodity based currencies such as the Australian Dollar have been on the decline for almost a week now.

My view for a while now is that I see currencies such as the Australian Dollar and New Zealand Dollar having a poor run in the coming weeks, as there is so much uncertainty around the world which  may lead to  a reversal of what is known as carry trading.

Carry trading is where an investor borrows money in a currency with a very low interest rate and moves it into a currency with a higher interest rate, making a return on the difference. With higher interest rates the Australian Dollar is regularly used for carry trading and in times of global uncertainty you can see it weaken quite considerable as the carry trades are sold back and demand for the Australian Dollar declines.

If you have the need to exchange Australian Dollars in the near future and you are looking to secure not only the best rate of exchange but to time it well too then it is well worth getting in contact with me directly. You can email me (Daniel Wright) on djw@currencies.co.uk with a brief overview of what you need to do and I will be more than happy to get in contact with you personally to explain the various options available to you.

 

 

Will the Pound to Aussie Dollar rate fall below 1.60? (Joseph Wright)

A quick look at a GBP/AUD chart over the past 6 months will make it clear that the 1.60 level has acted as a key psychological level for some time now.

Since November of last year the GBP/AUD pair have bounced off of 1.60 around 4 times, and even in October of last year when the Pound came under huge pressure the rate only dipped into the 1.59’s for a short while before recovering back to levels above the key 1.60 mark.

Personally I think that a number of factors could reverse the direction of GBP/AUD, and I think 1.60 could remain a support level for the Pound with the pair likely to approach 1.70 once the Brexit is underway.

At present I think the markets are awaiting the certainty the invocation of Article 50 will give financial markets, which will in turn boost Sterling’s value. I’m also expecting to see the strongly performing Aussie Dollar lose some value should the US Fed Reserve Bank begin hiking interest rates as is planned in the US, as a higher yielding Dollar will likely limit demand for the high yielding Aussie Dollar.

Aussie Dollar sellers are in the fortunate position of being able to convert their currency into Pounds at around 3 year highs. Those planning on selling AUD for GBP are able to improve on their outcome even further as our currency brokerage offers exchange rates that improve on those offered by the high street banks, therefore our clients receive more Pounds for the Aussie Dollars through us.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Pound to Australian Dollar exchange rates hold firm once more at key resistance level (Joshua Privett)

Sterling saw a very gradual decline throughout last week, yet anyone with a Pound to Australian Dollar interest managed to keep their buying position intact, the same could not be said for Euro and Dollar buyers.

The reasoning for the Pounds decline was due to key shifts in the Brexit debate between the House of Lords and the Commons.

It seems increasingly likely the House of Lords will be defeated on their first attempt to alter the Brexit Bill. They had not even yet tried to secure a gaurantee for a Parliamentary vote on any eventual deal reached with the EU, which was the main feature currency markets were hoping to be delivered.

This caused a gradual sell-off of Pounds since Wednesday, however, Pound to Australian Dollar exchange rates did not see the same 2% decline in Pound to Euro and Pound to US Dollar rates. This is for two key reasons:

Firstly, the 1.60 mark has been a key resistance level for the Australian Dollar for some time. We have hit this point on multiple occasions since October, yet this point has yet to be breached.

Due to the repetative moves to this point, investors are quite happy to take the considerable gains made on holding their Australian Dollars and convert to Sterling. This ‘balances out’ the rates given that demand for Sterling in the pairing suddenly spikes, and its value against the Dollar corrects upwards in a similar fashion.

Secondly, poor trade balance data for Australia contradicted what had been a fairly positive run of economic data in recent weeks.

 

Next week, there is little economic news expected to be released until Thursday, so this current narrative may see a gradual decline in the Pound’s status against other currencies. But the question is whether this resistance level will continue to hold firm?

I believe so. As such, as I have said on multiple occasions over the past five months, this is a fantastic selling level to convert Australian Dollars to Pounds and should not be sniffed at. Many people have been dissapointed by continuing to hold on for further gains on multiple occassions.

As such, depending on your timeframe for a transfer, if you having a foreign currency requirement involving Pounds and Australian Dollars, it’s well worth your time getting in contact with me on jjp@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.