Tag Archives: sterling

Chinese Interest Rate Cut Strengthens the Australian Dollar (Tom Holian)

Sterling vs Australian Dollar has fallen dramatically this morning following the announcement that China cut interest rates today. With Chinese growth now slowing to its lowest rate in almost 25 years the central bank has acted to stimulate the economy.

With factory growth stalling as well as the property market in China the rate cut was an aim to keep the Chinese spending. This is good news for the Australian economy as the more the Chinese spend the more demand there is for Australian natural resources.

Therefore, we have seen the Australian Dollar strengthen by over 1% against Sterling which has created some excellent opportunities in the short term for anyone looking to sell Australian Dollars.

This could however be a short term movement for GBPAUD exchange rates as it does go to show there are big problems in the world’s second largest economy.

If you have a currency transfer to make and want to save money on exchange rates then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

GBPAUD Rates fall below 1.80 (Tom Holian)

Sterling has had a very strong period against the Australian Dollar tipping towards 1.86 in recent weeks but last week saw the biggest fall for GBPAUD rates in quite some time.

The trigger point came in the form of the Quarterly Inflation Report which saw Sterling fall by over 1% against the Australian Dollar and this has continued all last week.

Indeed, at the time of writing GBPAUD rates have tipped below 1.79.

The Chinese economy is often seen as the catalyst for movement of the Australian Dollar and typically when the Chinese data is negative this weakens the Australian Dollar.

However, the news from the end of last week showed that China’s economy is showing more signs of weakness. This in theory should have weakened the AUD against the Pound but owing to the negative comments from Mark Carney this data appears to have been overlooked.

Tuesday morning sees the release of UK inflation figures and as they have dominated headlines this month this could cause a large amount of volatility for the GBPAUD currency pair.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

UK Unemployment gives Sterling a Boost (Tom Holian)

Sterling is back trading above 1.83 again after the brief fall we saw yesterday.

The Office for National Statistics showed that UK unemployment has fallen between July and September to 1.96 million which is the 18th month in a row that the rate has fallen.

Average earnings growth is also just above inflation which is the first time since 2009. The current rate of inflation is 1.2% and earnings came in at 1.3%.

This has helped to strengthen the Pound against the Australian Dollar this morning and we are about to see the Quarterly Inflation Report due out at 1030 this morning.

If you would like to know what happens shortly after the report this morning and what impact it may have on GBPAUD exchange rates and have a currency transfer to make then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Australian Dollar exchange rates remain fairly stable after Chinese data throws up no surprises (Daniel Wright)

A reasonably stable day in terms of exchange rate movements for the Australian Dollar with very little market movement seen.

Tomorrow we see Chinese loans data which may have an impact on the strength of the Australian Dollar along with unemployment and wage inflation for the U.K which is exceedingly important should you be looking to exchange Australian Dollars into Sterling or visa-versa in the coming weeks and months.

Wage inflation has been a key talking point in the U.k for a period of time now as it is one of the key factors that is stopping interest rates rising so soon.

Personally I now feel that exchange rates for GBP-AUD move up closer to the 1.90 figure as long as tomorrows data does not hamper the strength of the Pound.

In a reasonably quiet end to the week in terms of economic data for Australia the other key one to watch out for is Chinese Retail Sales and Industrial production figures due early Friday morning.

If you are looking to carry out a currency transfer in the near future involving either buying or selling the Australian Dollar then it will be well worth you emailing me directly. I have now had thousands of clients contact me through this site and they have found that they are getting a smoother, more efficient service than their bank or current broker along with a better rate of exchange by using me. You can email me on djw@currencies.co.uk with a brief description of what you are looking to do and I will be more than happy to assist you.

Chinese Data Strengthens the Australian Dollar (Tom Holian)

GBPADU exchnage rates have started to fall on Sunday night following some stronger than expect data from China. Chinese Trade Balance was higher than expected and a positive figure shows a trade surplus which is good news for the world’s second largest economy and also Australia.

GBPAUD exchange rates are heavily influenced by what happens in China as they are Australia’s biggest trade partner and any positive signs usually strengthens the AUD against GBP.

Tomorrow morning sees the release of the Chinese Consumer Price Index which is a key measure of inflation. Year on year is 1.6% so anything different could cause volatility for GBPAUD rates first thing.

I still believe that in the longer term we could see Sterling gain against the Australian Dollar as the economy appears to be too reliant on the mining industry and its relationship with China. Indeed, this could be a bubble bursting over the next few years which would heavily impact Australian Dollar exchange rates.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

US GDP Helps to Strengthen the Australian Dollar (Tom Holian)

GBPAUD exchange rates have fallen during today’s trading session following some very positive news from the world’s leading economy. With US growth surpassing the expectations of 3% to 3.5% this has led investors to choose riskier currencies again including the AUD, NZD & ZAR.

The good news is that the US has of last night ended their Quantitative Easing which has also led to a strengthening of the Australian Dollar.

The weakening over the last few months for the Australian Dollar has helped to increase revenues down under which has helped the Australian economy to grow. A lower exchange rates has helped to make Aussie exports cheaper and means that goods and services are more competitive.

One issue longer term for the strength of the Australian Dollar exchange rate is what will happen with Chinese growth which may slow during 2015. This could weaken the AUD against Sterling in the longer term.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

UK Economic Growth and Impact on Australian Dollar (Tom Holian)

Sterling fell during Friday’s trading session following the announcement of UK growth on Friday morning. The official figures showed a growth rate of 3% which was down from the annualised rate the quarter before which showed 3.2%.

The news is not actually that bad it was just a bit lower so I think the markets will not dwell on the news.

The big event of this week coming up will be the Federal Reserve’s Interest rate decision to be held on Wednesday night. The Fed are likely to end their current monetary easing from USD15bn to zero which could lead to a sell off from the Aussie Dollar which could see the Australian Dollar exchange rate weaken.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Australian Dollar Strengthens against Sterling (Tom Holian)

GBPAUD exchange rates have dropped this morning from 1.83 to 1.82 following the release of UK Retail Sales which saw a fall of 0.3% month on month.

This was the weakest level seen since January after mild weather in teh UK had a negative effect on new clothing purchases.

Over the last 12 months the level is 2.7% but the expectation was for a gain of 2.8% so Sterling has weakened during this morning’s session.

Recently the UK’s biggest supermarket Tesco announced a big fall in profits which has highlighted the slow down.

Tomorrow sees the release of UK GDP at 930am and with expectations of 3% I think the figure could be lower than expected and therefore see Sterling fall against the Australian Dollar offering very good selling opportunities if you need to sell AUD into GBP.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote Tom Holian teh@currencies.co.uk

 

 

 

GBP Strong against the Australian Dollar (Tom Holian)

Sterling has regained its recent falls against the Aussie Dollar a fortnight ago as the Chinese announced on Wednesday a big fall in inflation.

Indeed, the figure was the lowest level in almost five years causing worry for the economy down under. The reason why this could impact the Australian Dollar exchange rate is because China is the biggest trade partner for the country and any signs of a slowdown is likely to cause a negative effect on the AUD.

With fears of a global slowdown this often causes investors to sell off riskier currencies including the AUD, NZD & ZAR so I think we could see the AUD start the week off with a fall against the Pound.

The Reserve Bank of Australia publishes its minutes on Tuesday and with Chinese GDP also due out I expect to see a huge amount of volatility over the next few days for the Australian Dollar. Expectations for Chinese GDP are for growth of 7.2% so anything lower could see the Australian Dollar weaken.

If you’re worried about what may happen with AUD exchange rates and would like to save money on exchange rates compared to using your bank then contact me directly for a free quote Tom Holian teh@currencies.co.uk

 

 

 

Australian Dollar Forecast vs Sterling (Tom Holian)

For quite some time I have been suggesting that it is only a matter of time before the Pound rallies again vs the Australian Dollar as the UK economy has recently shown growth of 3.2% whilst the economy down under has started to show signs of a slowdown.

Chinese data in the form of Trade Balance and Exports is due on early Monday morning so any negative news could see GBPAUD exchange rates hit 1.85+

With the IMF having downgraded global growth forecasts this has led to investors selling riskier currencies including the AUD, NZD & ZAR. With the RBA also confirming that interest rates will be kept on hold this had led to AUD weakness and Sterling hitting 1.84. The RBA releases its minutes on Tuesday morning so we could see AUD continue to weaken if an interest rate rise has been pushed further back.

If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk