Tag Archives: exchange

Australian Dollar has a tough few days – What else lies ahead this week?

The Australian Dollar has not had a great week this week so far following on from the RBA meeting minutes released yesterday morning.

It still appears that the RBA are quite a way from considering raising interest rate this year, due to various concerns about how this will impact consumers over there and the general economic position for the country as it stands.

One of the key issues as it stands for Australia is wage growth, which is similar to many other economies around the world. Wage growth essentially measures how much people’s wages are going up and as it stands for many central Banks around the world the issue is that there is a gap between wage growth and inflation (the rise in the cost of goods or services).

Interest rates have been left on hold since August 2016 which is the longest level of stability since the early 1990’s and it does not look like there may be a change for a good few months yet.

Wage price index figures are due out tomorrow, which is a measure of the cost of labour and even though it does appear the labour market is looking fairly strong, we are yet to see wage growth pick up, this is slowing down consumer spending as consumers are starting to build up more and more debt.

Recent RBA data also shows that the mortgage debt-to-income ratio for Australia has risen from 120 percent in 2012 to 140 percent recently, which is not great news.

All in all I am still of the opinion that the Australian may struggle in the coming weeks and months as issues like this continue to dent economic data, so if I had Australian Dollars to sell i would be tempted to sell them reasonably soon depending on which currency I needed to purchase, if I had Australian Dollars to buy with another major currency then I would watch this market closely for a spike.

If you are in the position that you need to make a currency exchange in the near future then it would make sense to get in touch with me as I can help you both in terms of achivieving the very best rates along with assistance in the timing of your transaction.

Feel free to contact me (Daniel Wright) the creator of this site on djw@currencies.co.uk and I will be more than happy to get in touch with you personally.

Australian Dollar liable to global stock market sell off and RBA warning leads to Australian Dollar weakness

The Australian Dollar has had a fairly choppy week so far this week, generally losing ground against most major currencies due to comments from the Reserve Bank of Australia that indicated that any interest rate hikes may be quite far away, and also due to global uncertainty in the stock market, seeing the Dow Jones and other indexes around the world drop considerably over the week.

The issue with the Australian Dollar is that it is perceived as a riskier currency, therefore when you tend to see a volatile global market, and uncertainty politically or with economic data  around the world you tend to see the Australian Dollar weaken, as investors will shy away from riskier currencies and head to safer havens, such as the U.S Dollar and the Swiss Franc.

As I indicated earlier in the week I do feel that the Australian Dollar may have a tough period coming up, with interest rates due to be raised by various central banks around the world this may lead to a further flow out of the Australian Dollar and into more attractive currencies with better returns on investment.

The RBA also released a monetary policy statement last night, and although economic data is still fairly good there are concerns around slowing wage growth and inflation rising too.

Poor wage growth and high inflation is a big issue for an economy, as it means the cost of goods and services is going up yet the amount the general consumer has to spend is not rising in line with it, another potential issue for the Australian Dollar going forward.

Not only do we offer up to date market information for our readers but we can actually help you with any currency exchanges too, with top foreign exchange rates and a smooth and efficient service. With over ten years of experience in foreign exchange I would like to think I could be an excellent addition to your armoury when taking on these volatile markets. Feel free to contact me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to help you personally or to get you a live quote.

Employment data will be the main focus for Australian Dollar exchange rates this week (Daniel Wright)

In a reasonably quiet week ahead for Australian Dollar news, the main focus for investors and speculators alike this week will be global attitude to risk and Australian unemployment figures. Global attitude to risk can change at any time, especially with the Trump/North Korean situation still ongoing and the unemployment figures are due out on Friday morning in Australia or overnight on Thursday night for those readers from the U.K.

Expectations are for unemployment levels to remain at 5.4% however with a positive improvement in the rise of jobs last month (which was unexpected) do not rule out movement for Australian Dollar exchange rates early on Friday.

Having just spent three weeks in Australia it does appear that views on the Australian economy are mixed at present. Some people I spoke to were really confident about how things were going and others were less positive, citing that they felt that certain areas were at the top of a housing bubble that was due to burst at any time.

My opinion from being on the ground over there, particularly in Sydney (where this bubble appears to have blown up the most) I do not see it crashing down anytime soon. There is a huge amount of building work going on and a great increase in new retail developments from what I can see, along with an influx of Chinese money I find it hard to see the house prices dropping off unless further restrictions are put in place to try and halt it artificially.

For me this suggests that the Australian Dollar should remain fairly strong in the early part of 2018, I do not expect large gains made by the Australian Dollar but I would be surprised not to see the currency hold its ground against most majors, as long as the banana skin of major global uncertainty comes along to change that.

If you have an Australian Dollar exchange to make in the coming days, weeks or months and you would like assistance not only on the timing of your transfer but also with achieving the very best rate of exchange too then I can help you personally.

Feel free to get in touch with me (Daniel Wright) by emailing me on djw@currencies.co.uk and I will be more than happy to get back to you. Having now worked at the same foreign exchange brokerage for over a decade I am well placed to assist you and will be more than happy to help.

Aussie Dollar bull run pauses as data disappoints, but will AUD/GBP continue to climb in the long run? (Joseph Wright)

The strong upward trend for the Aussie Dollar paused today as financial markets were disappointed with data released down under.

The Pound to Aussie Dollar rate climbed back up to 1.73 today after losing value in recent weeks as the Aussie has been strengthening, but the GBP/AUD rate still has a long was to go to recover back to the high 1.70’s it was trading at just a short while ago.

AUD fell in value today though after Australia’s trade balance figures fell short of forecasts and into a deficit, meaning that the Aussie economy isn’t quite as strong as many had expected.

Recently the Aussie Dollar had been strengthening off the back of substantial gains in the value of iron ore, which is a key export of Australia’s.

Moving forward I expect the par to continue to be driven by both the performance of Australia’s economy coupled with Brexit related updates. Sentiment surrounding how smoothly the Brexit will take place and how the UK economy will fair during and after the Brexit have continued to have perhaps more of an impact on the Pound’s value than the performance of the UK economy, especially when we consider that the UK economy outperformed almost every economists predictions yet GBP is still fairly weak.

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.

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.