Tag Archives: exchange

Poor wage growth leads to Australian Dollar weakness despite better unemployment figures (Daniel Wright)

This week has been a mixed one for the Australian Dollar so far, with a fairly week start and a flatter past 24 hours.

The reason the Australian Dollar lost strength earlier in the week was due to news of slower wage growth than expected.

Wage growth yesterday came out at 0.5% against analyst’s expectations of 0.7% which is the reason why we saw Australian Dollar weakness.

Wage growth is a really important release in the current climate, if wage growth ( the increase in how much people are earning)  is a lot lower than inflation (the increase in the costs of goods and services) then you can generally expect an economy to drop off a little, as people will have less money in their pocket to spend. Bad economic data can then in turn lead to weakness for a currency, and with markets moving well in advance of an event actually happening this is why we are seeing a good opportunity to buy Australian Dollars at present.

Unemployment figures came out today and despite the fact that they actually showed an improvement, the Australian Dollar failed to make any vast improvements against most major currencies.

The rest of the week is fairly quiet but do not be fooled into thinking that the Australian Dollar will remain flat, being perceived as one of the ‘riskier’ currencies there is always the chance of movement should global attitude to risk alter.

Should you be in the position that you need to buy or sell a large amount of Australian Dollars and you would like my help along with a better exchange rate than your bank or current broker then I would love to hear from you. You can email me (Daniel Wright) personally on djw@currencies.co.uk with a brief description of what you would like to do and I will be more than happy to get in touch with you to explain how I can assist.

RBA leave interest rates on hold as expected (Daniel Wright)

This morning the RBA (Reserve Bank of Australia) announced that they would be leaving interest rates on hold at 1.5% which was exactly as the markets had originally expected.

The decision didn’t have a huge impact on the value of the Australian Dollar as it had been widely expected that rates will remain on hold for the coming months.

An interest rate hike is generally seen as positive for a currency and a cut in rates is seen as negative so interest rate movements can be key for a currencies strength. Even the mere mention or speculation of a hike or cut in interest rates can lead to exchange rates moving quite a lot, so any hints or change to the likelihood of a rate change may be of great importance if you have a pending exchange to carry out.

I still personally feel that the Australian Dollar may have a slightly rough patch coming up, although it does have a great backbone and constantly seems to fight back even in the toughest of times.

We have a huge amount of economic data due out in China tomorrow which will be key for where Australian Dollar exchange rates head for the rest of the week, along with Chinese inflation data on Thursday too. We have very little out from Australia over the course of the week that should impact the value of the Australian Dollar so focus will no doubt be on what the data from China brings.

Chinese data can have a large impact on the value of the Australian Dollar due to Australia’s large amount of exports to China so this data is important for anyone looking to buy or sell Australian Dollars.

If you have the need to buy or sell Australian Dollars in the coming days, weeks or months then it may be prudent to get in contact with me directly and I would be more than happy to help you.

Not only can we better rates from all major brokerages but we can also help you with the timing of your transfers, we have various contract types that we can offer from limit orders to forward contracts and can help tailor a game plan to suit you personally. Making international transfers is important and the difference from broker to broker can be thousands of Dollars. Feel free to contact me (Daniel Wright) by emailing djw@currencies.co.uk and I will be more than happy to get in touch with you personally.

Will the Pound to Australian Dollar rate manage to hold its ground above 1.70? (Joseph Wright)

The Pound has fallen against most currency pairs today, making the converting of Pounds into other foreign currencies such as the Aussie Dollar a less attractive prospect.

Since breaking back above 1.70 against the Aussie Dollar, which has been a key psychological level for GBP/AUD since the Brexit vote the Pound has managed to hold its ground above it despite some negative data coming out the UK today.

Sterling has been helped regarding the GBP/AUD pair by Aussie Dollar weakness, as some particularly poor retail sales figures from down under recently spooked the markets.

Today it was also retail sales figures that disappointed but this time it was the UK’s retail sales figures.

With Brexit talks forever in the financial headlines at the moment putting pressure on the Pound, along with disappointing data out of Australia recently it may be a battle of which currency is the weakest that determines where GBP/AUD goes next.

There are no more major economic data releases out of the UK this week, so I expect the pair to continue to be driven by sentiment. With all that’s going on in the UK politically at the moment I there can always be a news release that swings GBP exchange rates, and if you wish to be updated if there are any big moves it’s certainly worth registering your interest with me.

Next week there will be releases that could impact the GBP/AUD rate further, so it’s worth getting in touch before the weekend if you wish to plan around any key times.

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.

Sterling – Australian Dollar rate flies through 1.70 – Australian Dollar weakness and Sterling strength (Daniel Wright)

For a few weeks now I have had many clients waiting to be able to achieve the 1.70 mark for their exchange of Pounds into Australian Dollars and finally I have been able to give some of them the rate they have been waiting for.

Overnight on Tuesday, or Wednesday morning for those in Australia we had news that Australian inflation levels had dropped off to 1.8% from a predicted 2%, leading to the Australian Dollar weakening a little against most major currencies.

The reason a lower inflation figure usually leads to a currency dropping off is due to the fact that lower inflation figures decreases the chance of an interest rate hike. An interest rate hike is generally seen as positive for the currency concerned so if the chance of that happening decreases then usually so does the value of the currency involved.

For those that are tracking GBP/AUD exchange rates, you received a second piece of good news on Wednesday morning (or evening for those in Australia) as we had U.K growth figures released and they too, were a little better than expected year on year.

We have seen GBP/AUD exchange rates creep up because of these two factors and they are now almost at the best exchange rate they have been at this year, as an example a £150,000 exchange into AUD now compared to a few months back will net you almost AUD 15,000 more!!

If you are in the position where you may wish to purchase or sell Australian Dollars in the coming days, weeks of months then this can be seen as a fantastic opportunity for you, with brexit still hanging over the head of the Pound there is always that chance it may drop back again at any time.

If you would like to check  that your current provider or bank  is getting you the most for your money then why not take advantage of a currency audit which I will be more than happy to do for you. Email me the price you have been quoted, the volume involved and what time you got this and I will get back to you and let you know if you are getting a good deal or if there is a great deal of money to be saved.

We are very transparent here, if your deal is great I will be honest with you and let you know just that, if it isn’t then I will let you know how much more you can get and how I can help you.

Should you wish to take advantage of this then you are welcome to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to get in touch personally.

Australian Dollar makes gains overnight against most major currencies following positive unemployment data and data from China (Daniel Wright)

The Australian Dollar has made solid gains overnight against most major currencies, following positive unemployment figures released a few hours ago in Australia.

The main unemployment rate moved from 5.6% to 5.5% which was slightly better than expectations and showed a small improvement in the Australian jobs market.

On top of this a short while after we had Chinese Retail Sales and industrial production figures which were both slightly better than expectations too. Economic data from China can have a fairly large impact on the value of the Australian Dollar as Australia does rely on China for many of its exports so positive news from China generally gives the Australian Dollar a boost whilst negative data can lead to Australian Dollar weakness.

We have very little economic data left to come out from both Australia and China for the rest of the week so focus for the Australian Dollar will more likely be on global attitude to risk and any hints on interest rate change from the few members of the federal reserve that are due to speak this week in the U.S.

Next week heads will turn towards Australian inflation data, released on Wednesday morning in Australia or Tuesday late at night if you are following from the U.K.

It does appear that inflation is still outweighing wage growth in Australia, just like we are witnessing in the U.K too at present which is a slight concern for the economy and may be one of the reasons why the RBA are more than likely to hold off on any interest rate change in the coming months.

Personally I still feel that the Australian Dollar is a little stronger than it should be and that it may weaken off in the coming weeks but with economic data giving it a backbone this week then it may continue to gain over the next few days.

Here at Australian Dollar Forecast we do not only offer our readers regular, up to date market news but all of our writers also work for one of the top foreign exchange brokerages in the country. The brokerage has been in operation for over 18 years now and many of our writers have been here for the vast majority of that period so you know you are dealing with a well established company and a highly experienced trader too.

If you feel we may be able to help you exchange your currency for your business, or for a property purchase or sale then feel free to contact me directly on djw@currencies.co.uk and I will be happy to contact you personally. You may already have a broker that you have lined up for this transaction but if you are having to research the markets yourself and you have stumbled across this site doing so, then your broker isn’t doing a very good job as they should be getting the information for you!

Feel free to get in touch, even if it is for a quick quote to make sure you are getting the right price as a small difference can make a large change to the amount of money that your exchange costs you.

Bad news for the Pound pushes it lower, are trade levels in the early 1.60’s on the horizon again? (Joseph Wright)

Despite some negative data being released down under in the early hours this morning, the Pound has still dropped against AUD throughout the day’s trading.

The worst Retail Sales figures in 4 and a half years were published this morning, as it turns out that Australian consumers are beginning to cut back on items such as food, clothing and furniture.

The reading for July was also revised down from the previous reading, meaning that the two drops in sales figures are the biggest back to back drop since 2010.

Despite this this disappointing data release the Pound has still fallen against the Aussie Dollar, whereas the majority of other major currency pairs have risen against the Aussie.

Sentiment surrounding the Pound took a knock today as ratings agency, Standard & Poors questioned whether the UK could withstand an interest rate rise, and it emerged that car sales in the UK are continuing to drop.

There has also been a lot of talk regarding UK Prime Minister, Theresa May’s calamitous speech to the Conservative party conference on Wednesday.

Odd’s are increasing on her resignation and although I don’t expect any changes at number 10, I think any talk surrounding this matter could result in a weaker Pound which could push the GBP/AUD pair down towards the 1.60 mark.

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.

Will the Australian Dollar drop in value in the coming months? (Daniel Wright)

Many clients have been asking me recently where the Australian Dollar may head next, with no interest rate move on the cards in the near term and numerous global problems at present I feel that the Australian Dollar may get a little weaker in the coming months.

A recent article in the Sydney morning herald suggests that many feel the same. Much of the article is based around the U.S Dollar and Australian Dollar flows. The Federal Reserve in the States have hinted at a further three interest rate hikes in 2018 and many analysts still believe we will see very little movement on interest rates throughout 2018.

An interest rate hike is seen as positive for a currency and a cut is seen as negative, as a hike will make that currency more attractive to investors. On top of this, you tend to find that you can see a flow between USD/AUD when there are times of global issues. The Australian Dollar is perceived as a ‘riskier’ currency and the U.S Dollar still held in regard as safer haven currency.

As many regular readers will know, there are a huge amount of problems around the world at present, both in terms of economies around the world and politically too, I don’t see many of these going away anytime soon, so we may see the Australian  Dollar take a few knocks as and when there are further issues that crop up.

My personal opinion is that although the Australian economic data has been ok, the economy still isn’t flying and there is still an issue with house price inflation in many areas and that is a problem that is hard to resolve as the RBA are still not in the position to raise interest rates at present.

Overnight last night we saw extremely poor Retail Sales data for Australia, leading to Australian Dollar weakness overnight.

If you are in the position that you need to exchange Australian Dollars in the near future then I can not only help you with getting the best rate on your exchange but also with the timing of your transfer.

Should you require assistance then I am always happy to provide you a quote against your current choice for exchanging money, along with having a discussion with you to tailor a game plan for how to approach the upcoming exchange.

If you would like me to get in touch with you then feel free to email me directly on djw@currencies.co.uk and I will be more than happy to get in touch with you personally.

Is the Aussie Dollars bullish run coming to an end? (Joseph Wright)

The Pound is continuing its recovery against the Aussie Dollar, with the rate rising above the 1.70 mark once again and this time almost hitting 1.72 at its highest point during today’s trading session.

I believe this change in direction for the pair can be put down to both Sterling strength as the pound is also putting in some strong performance against other major currency pairs. This is likely due to Brexit headlines and uncertainties not being in the spotlight which has been a welcome change for those hoping to exchange their Pounds at more competitive levels.

The upward movement for GBP/AUD has also been aided by the weakening Aussie Dollar which had previously been one of the strongest performers of the year.

The drop in the Aussie dollars value can be put down to a slowdown in Chinese growth, falling commodity prices such a iron ore which is key for AUD, and also talk of the Reserve Bank of Australia not planning on hiking interest rates until 2019 which is in start contrast to the Bank of England who have alluded to hike as soon as next month.

Tomorrow morning there will be a key data release out of the UK as UK GDP will be released around 9.30am. If this figure deviates from the expectation we could see further movement, so feel free to get in touch with me if you wish to be kept updated regarding this release.

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 exchange rates have a volatile 24 hours – Lowe sees a bright outlook (Daniel Wright)

The Australian Dollar has had a fairly turbulent time over the past 24 hours, with fairly large swings against most major currencies.

Leading up to the Federal Reserve interest rate decision over night the Australian Dollar initially gained ground. Janet Yellen, Chair of the Fed then announced that the U.S will aim to start cutting back its QE (Quantitative Easing)  program and that they still plan on an interest rate rise in the coming months.

This led to a little USD strength and weakness for the antipodean currencies (AUD,NZD and ZAR) as we saw investors shift funds out of riskier currencies and into the Dollar following this slightly more positive news.

Earlier today we then saw Governor of the RBA Philip Lowe comment to the American Chamber of Commerce in a speech he called ‘the next chapter’. Lowe was fairly positive about the economy going forward and this gave the Australian Dollar a minor boost back once again in a volaitle period for those that have Australian Dollars to buy or sell in the coming days, weeks or months ahead.

For anyone with an interest in GBP to AUD or AUD into GBP you should be aware of Prime Minister Theresa May speaking about Brexit tomorrow which may lead to a particularly volatile day for the Pound.

If you have a pending currency exchange to carry out in the coming days, weeks or months then it would be prudent to get in touch with me directly no matter who you were planning to use. I have had thousands of people contact me through this blog over the years that had planned to use their bank or their current broker and the vast majority have ended up using our company instead due to better exchange rates and a smooth and efficient customer service.

If you would like to get a free, no obligation quote to compare against what you are currently being offered then you can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of your needs and I will be more than happy to contact you personally.

A fairly quiet end to the week for Australian economic data – Bank of England interest rate decision is key today on the markets (Daniel Wright)

The Australian Dollar has remained fairly strong over the past few weeks, mainly down to the Australian economy still posting fairly strong GDP, a strong labour market and solid business investment in recent data.

The one thing that has held the Australian Dollar back has been the weakening of commodity prices and the issues with North Korea causing the perceived ‘riskier’ currencies to lose a little strength.

Chief economist at NAB (National Australia Bank) recently commented that he feels the RBA (Reserve Bank of Australia) may look to raise interest rates in mid 2018 should this trend of positive news continue.

Today will be key for anyone with an interest in buying Australian Dollars with Sterling or selling Sterling to buy Australian Dollars. At Midday in the U.K we have the Bank of England interest rate decision and monetary policy statement. Recent news this week has shown that inflation in the U.K is rising at a fairly rapid pace and currently is sat at 2.9% whilst average earnings figures are only creeping up at 2.1%.

It is doubtful that we will see any changes to interest rates from the Bank of England but what will be key is any indication that the rates may move sooner than the expectation of 2019 then GBP/AUD exchange rates may well be in for a volatile afternoon, or night if you are based in Australia.

If you have a currency exchange to carry out in the coming days, weeks or months then it would be prudent to get in touch with us directly here as we are experts in this field and can both save you money and ensure your funds arrive where they need to be in a smooth and efficient transaction.

Should you wish to contact me (Daniel Wright) personally then you can get in touch with me by email on djw@currencies.co.uk or by contact our trading floor during U.K trading hours on +44 (01494 725353) quoting Australian Dollar Forecast and asking for me personally.