Tag Archives: rates

Will GBPAUD hit 1.70?

Expectations for the GBPAUD rate to keep rising seem now linked inextricably to the likelihood of the UK raising interest rates. GBPAUD rose yesterday from 1.62 to now near 1.66 as markets believe there is an increased likelihood the UK will raise interest rates to combat rising Inflation. The Australian dollar has been performing quite well itself, in the short term this could be a spike to be seriously considering for AUD buyers.

Looking further at what we can see ahead for the UK and the pound this morning’s Unemployment data at 09.30 am UK time and tomorrow’s UK Interest rate decision are the key pieces of news to monitor for movements on GBPAUD. Should the Bank of England acknowledge that improving Inflation is a cause for concern and the market detect signals of a rate hike sterling could well have another good couple of days.

I don’t actually think we will see any UK interest rate hikes for quite some time, the rising Inflation was actually caused by increases in the price of clothes and shoes. I fail to see how this will really be enough of a trigger for the Bank of England to actually go ahead and raise interest rates but nevertheless the speculators will probably seek to push the market higher as a consequence.

If you are buying or selling Australian dollars with pounds this latest movement has presented some excellent short term opportunities. The outlook for sterling remains mixed so making plans around potential spikes is key to maximising your exchange rate. We aim to ensure out clients are totally informed of all the latest trends, news and themes to help them make an informed choice about what is the best way forward.

Fore more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you and assisting in the future.

Australian Dollar gains strength after solid trade data overnight (Daniel Wright)

The Australian Dollar gained ground against most major currencies during the Asian session due to seeing Australia’s trade balance rise more than expected during May.

Exports were up, which for a export driven country is seen as a real positive for the Australian economy and indeed the Australian Dollar. We only really saw small gains for the Australian Dollar off the back of this, but it was welcomed by those with Australian Dollars to sell in the near future, after seeing AUD exchange rates drop off earlier in the week following the RBA interest rate decision and monetary policy statement.

The RBA had set a more dovish tone than had been expected, both on the economy going forward and on future fiscal policy changes, this led to Australian Dollar weakness immediately after the release and a little further weakness during trading yesterday.

Rest of the week for AUD exchange rates?

Tomorrow we have a little economic data out from China and also Non-Farm Payroll data out from the U.S.

Chinese data can impact the Australian Dollar quite heavily due to the volume exported over there and the Non-Farm data can affect all major currencies as it will alter global attitude to risk. Currently, the Australian Dollar is perceived as a riskier currency so any slight alterations in risk sentiment worldwide can impact Australian Dollar exchange rates.

With so much going on in the market at present, it is extremely important that if you have a currency exchange to carry out in the coming days, weeks or months then it is imperative that you have an experienced and proactive currency broker on your side. Here at Australian Dollar Forecast we can not only help you with up to the minute market data but we can also work with you to help you time your transfer and to get the best rate when you do carry it out.

Feel free to contact me (Daniel Wright) the creator of this website should you wish to receive more information on our services and I will be more than happy to get back to you as soon as I can. You can email me on djw@currencies.co.uk and I look forward to speaking with you.

Next week to be a busy one for Australian Dollar exchange rates (Daniel Wright)

Next week we have a flurry of economic data which will have an impact on Australian Dollar exchange rates after a fairly quiet end to the trading month.

On Tuesday we have the RBA (Reserve Bank of Australia) interest rate decision, shortly followed by the interest rate statement. At the last interest rate decision we saw no changes to rates and on top of this we also had comments that the RBA would more than likely not be looking to cut interest rates in the near future. The reason for this is to avoid adding to the current asset bubble they are witnessing and I would be surprised if that stance has changed.

It will be interesting  to see if the general view going forward has altered at all and should there be any hint towards the RBA leaning towards a cut in interest rates then we may see the Australian Dollar weaken a little.

Later on in the week we have the release of Australian import and export data early on Thursday morning, and this will also have an impact on the value of the Australian Dollar due to exports being so key for the Australian economy.

We had a report released earlier this week suggesting that there actually is a rather high debt burden in Australia at present, with household debt rising extremely rapidly which may be a concern for Australia later down the line.

My personal opinion is that I can see a small period of Australian Dollar weakness coming up as there does appear to be a few different matters out there that may lead to the Australian Dollar getting a little weaker.

If you are in the position where you may need to buy or sell Australian Dollars in the coming days, weeks or months then it is extremely important that you have an experienced currency broker on your side. You are more than welcome to get in touch with me (Daniel Wright) personally and I will be able to help you, both in terms of securing the very best exchange rate and timing your transaction. This can make the difference of thousands of Dollars.

Feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to speak with you personally to explain exactly how I can be of assistance.

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 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.

 

 

Australian growth figures expected to be extremely strong on Wednesday (Daniel Wright)

Wednesday sees the release of GDP figures in Australia with expectations of a fairly good jump in month on month figures and a slight improvement in year on year levels.

GDP (Gross Domestic Product)  figures essentially measure the growth of an economy over a specific period of time, and should these figures come out as positive like they are expected to then we may see another bout of Australian Dollar strength overnight.

It does appear that the Australian economy is heading in the right direction once again following a fairly average run of form, and with Australian interest rates still remaining extremely favourable compared to many other economies within the world, the Australian Dollar is still a key candidate for carry trading.

Carry trading is where an investor borrows money from a currency with a very low interest rate and shifts it over to a currency with a much higher one, making their return on the difference. When the AUD is used a lot for carry trading it can strengthen due to the age old rule of supply and demand, so I feel the Australian Dollar will continue to remain fairly strong as long as the economic data backs it up and interest rates around the world do not change too much.

If you have Australian Dollars to either buy or indeed sell in the coming days, week and months then it is well worth having an experienced and proactive currency broker on your side, that not only offers you competitive rates of exchange but that can help you every step of the way in this challenging market too.

If you feel that you would like some assistance of this nature and you would like this kind of help then feel free to email me (Daniel Wright) directly on djw@currencies.co.uk and I will be more than happy to call you personally to discuss the various options available to you. You can also call our trading floor on 0044 1494 725353 (ask for Daniel Wright) we are U.K based but can help you no matter where you are in the world on sums from £5000 to multi-million Dollar transactions.

Australian Dollar exchange rates hinge on unemployment figures due out on Thursday – Will we see Australian Dollar strength? (Daniel Wright)

Australian unemployment figures are due to come out on Thursday and expectations are that we may see the continuing trend of a fairly robust economy with the unemployment figure predicted to be at 5.8%.

Should this come out as expected or even slightly better then we may see the Australian Dollar make some further gains against most majors but any rise in unemployment may knock Australian Dollar exchange rates back a little.

The Australian economy has had a few knocks over the past few years but still seems to be hanging on in there, and earlier predictions of large Chinese problems appear to have been swept under the carpet for the time being.

I am still of the opinion that the Australian Dollar will have a period where it does have a tough time, however the issue is that as it stands it is seen as one of the best of a bad bunch, with interest rates still fairly favourable we may not see that change too imminently.

One larger factor that may be a trigger for a drop off could be further rate hikes in the U.S, should we see the interest rate in the States start to catch up the interest rate in Australia then you may see a large unwinding of carry trades, as investors would rather have their funds sat in USD than AUD due to its perceived safer nature.

Carry trading is where an investor borrows money in a low interest rate and shifts it to a currency with a higher interest rate, making a return on the difference.

If you are looking to buy or sell Australian Dollars against any major currency in the near future and you want to maximise your rate of exchange then it is well worth you getting in contact with us here personally. You can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of what you are looking to do and I will be more than happy to contact you personally.

 

Sterling Australian Dollar exchange rates due for a volatile day today? Supreme Court decision due out today! (Daniel Wright)

The long awaited Supreme Court hearing decision in the U.K is due out later this morning, which many expect  to cause a fair amount of market volatility, not only for the Pound but for global markets as a whole.

Since this all started in December, the markets have been watching and waiting for any hint as to which way that the decision may go, as it will have a great impact on the Pound and where it heads next due to the influence it may have on a ‘hard’ or ‘soft’ brexit.

Should the Supreme Court overturn the high court decision and say that Theresa May and the Government are good to proceed with moving forward on article 50 (starting the process of brexit officially) then there is the chance that Sterling may drop off a little, but also to show another argument it may lead to Sterling strength as we will finally have a little certainty as to where the U.K heads with all of this.

The expectation is for the decision to confirm that they are upholding the High Courts initial decision and that May will have to put the decision through Parliament. If this is the case then more uncertainty may give the Pound a little drop off but what we hear afterwards could push it back up as I would be surprised if we do not hear a lot of the MP’s asking for a softer approach to brexit which may leave access to the single market.

All in all this could be a very busy day for Sterling/Australian Dollar exchange rates so you need to make sure you are watching the markets at all times, or that you take advantage of limit orders. If your current broker or bank has not made you aware of this handy tool then this is something that we offer. A limit order is where you can set a particular rate trigger in the market that you would like to achieve,  and should it become available any time 24 hours a day 7 days a week then your rate will be bought out automatically for you. There is no cost to place this order and it can be cancelled or amended at anytime with a quick phone call to us.

If this seems of interest or you would like to make an enquiry about our award winning service and exchange rates anyway then it will be well worth you contact me personally. You can email me (Daniel Wright) on djw@currencies.co.uk with a description of your needs and I will call you personally to discuss the options available to you and to explain how it all works.

Will GBP/AUD breach 1.70 soon? Sterling back in fashion? (Daniel Wright)

We deal with a lot of clients moving money to and from Australia and many that have had to move money into Australian Dollars have had a tough time of things since the referendum in the U.K.

Recently we have seen the pound start to stage a fight back following the victory for Donald Trump and the riskier currencies starting to take a slight turn for the worse.

On top of this, economic data in the U.K has not exactly been anywhere near as bad as the main economists had thought that we may see and the chance of article 50 and the start of official ‘brexit’ negotiations may well be being pushed back.

We do not have a great deal of economic data out for the rest of the week for Australian Dollar followers, however, with Thanksgiving day on Thursday trading levels will be thinner on the ground so this can lead to volatile swings in the market.

Going back to the title of this post I personally feel that we may see GBP/AUD move back above the 1.70 mark in the near term as the tide appears to be turning in favour of Sterling.

If you are in the position that you may need to buy or sell Australian Dollars in the coming days, weeks or months then it is well worth you getting in contact with me directly, I have been getting clients much better rates than well known Australian based online platforms and can save you money over the banks and other brokers. We typically help clients with exchanges over 20,000 Australian Dollars and try and help both with the timing of the transfer along with getting you market leading rates when you do decide to book your currency.

Feel free to contact me (Daniel Wright) if you are in this position and require my assistance. You can email me directly on djw@currencies.co.uk and i will be more than happy to get in touch personally.

Australian inflation figures due out overnight – GBP/AUD still hanging around at 1.60 (Daniel Wright)

The Australian Dollar remains fairly steady once again today, hanging around the pivotal point of 1.60 (0.6250) against the Pound and waiting for something to give it the nudge it needs to push on either way.

Later today we have Mark Carney (Governor of the Bank of England) speaking to a committee regarding the implications of the referendum vote in the U.K on the economy going forward, so be aware that if you are looking to buy Australian Dollars with Sterling or to exchange Australian Dollars back into Sterling then it is well worth keeping an eye on exchange rates late afternoon U.K time. Even the slightest hint at a change in fiscal policy may lead to sharp movements for the Pound, if you would like me to keep you up to date should any big movements occur then feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to help you.

Overnight in the U.K or early morning in Australia we also have Australian inflation figures out. There are no expectations for any huge surprises from these figures however I would be aware that should inflation figures differ to expectations then the Australian Dollar may move quickly. Personally I feel that Mark Carney speaking this afternoon has a higher chance of causing market volatility but then and again regular readers will know that surprises always pop up in this market.

If you are in the position where you need to buy Australian Dollars or you have a large sum of Australian Dollars to bring back into Pounds then I am extremely well position to help you. Having been assisting clients in your position for 10 years I have help transact billions of Australian Dollars for private individuals over the years and I would be more than happy to assist you too.

Feel free to get in touch with me (Daniel Wright) on email by contacting djw@currencies.co.uk and I will ensure I get in touch with you personally. You can also call our trading floor on +44 (0) 1494 725353 and ask for Daniel Wright.