Tag Archives: sterling

Australian Dollar weakens vs Sterling following US Jobs Data (Tom Holian)

After a good start to the week vs the Sterling the Australian Dollar has ended the week trading at above 2.05 after hitting 2.01 a few days before.

The US jobs data although showed their lowest levels of unemployment since 2008 the data also showed a lot less new jobs created with 151,000.

This has caused the Australian Dollar to weaken as often what happens in the US has a big impact on risk appetite for global investors.

With the data coming out mixed all the commodity based currencies including the AUD, NZD & ZAR have all weakened following the report vs Sterling.

With little data due out until the latter part of next week I think we could start the week off quite positively for Sterling creating some good opportunities to buy Australian Dollars.

However, all eyes will focus on UK data in the form of industrial and manufacturing figures released on Wednesday. Recently they have hit 6 year lows and I expect more of the same.

Following on from this the NIESR release UK GDP for the last 3 months and I expect this figure to be low.

Therefore, if you need to buy AUD it may be worth doing early in the week and conversely if you need to sell Australian Dollars to buy Sterling it may be worth holding out towards the end of the week.

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

 

 

Sterling under pressure vs the Australian Dollar before the UK Quarterly Inflation Report (Tom Holian)

Sterling has come under pressure once again vs the Australian Dollar as the UK has a big day ahead for economic data which will impact GBPAUD exchange rates.

The UK Quarterly Inflation Report is published at the same time as the Bank of England interest rate decision and I think this could cause big movements for Sterling in a negative direction vs the AUD as inflation is worryingly low.

Inflation was measured last week at just 0.2% well below the Bank of England’s target of 2% and until things start to improve then the BoE will find it difficult to raise interest rates in the UK.

Indeed, recent speculation is that interest rates won’t rise until May 2017 which has caused confidence in the Pound to fall recently.

I expect the Quarterly Inflation Report to shows big problems for inflation which is something that Mark Carney will be asked about at today’s meeting.

Also, for many months now the MPC have voted 8-1 in favour of keeping rates on hold so if there’s a split to 9-0 then I think we could even see GBPAUD rates move towards 2 on mid-market going into the weekend.

Forecast for today is for Australian Dollar strength vs Sterling.

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

Alternatively call me directly on 01494787478 and ask for Tom Holian when calling

 

 

Australian Dollar benefits from the Japanese Interest Rate Cut (Tom Holian)

The Australian Dollar vs Sterling has felt the benefit of a Japanese interest rate cut this week as the negative rate means carry trading which involves money going out of Japan in search of higher yields including the Australian Dollar.

This has seen Australian Dollar rates vs Sterling at their strongest level since May 2015 with GBPAUD rates hitting below 2 during Friday’s trading session.

On Tuesday the Reserve Bank of Australia meets to discuss interest rates and if they keep the policy the same of keeping rates on hold I think this could result in more Australian Dollar strength.

I do expect the RBA to cut rates during 2016 but I don’t think will happen for some time so next week I expect GBPAUD rates to drop below 2 again providing some excellent opportunities to sell AUD into Sterling.

Wednesday sees the release of Australian Trade Balance and Export figures which could see a small recovery for Sterling vs the AUD if the figures show a fall owing to the slowdown in China.

However, overall I expect GBPAUD rates to fall below 2 again during the week.

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

 

 

Brief respite for AUD Buyers (Tom Holian)

Sterling Australian Dollar exchange rates had a brief respite during Friday’s trading session following on from the better than expected Public Sector Net Borrowing figures.

The big fall in borrowing caused Sterling to rally briefly against the Australian Dollar creating a small window of opportunity to buy AUD with Sterling.

However, I think the positive movement will be short lived as the Bank of England governor Mark Carney said earlier this week that UK interest rates will remain on hold until earliest 2017 which caused Sterling’s value to drop.

He is due to speak again on Tuesday and I think he’ll confirm the same and suggest that the UK economy is feeling the effects on low oil prices amongst other points which could cause the Pound to drop.

Also due out next week is the US Federal Reserve’s interest rate decision on Wednesday evening.

With the US having suggested that they could raise rates another 3 times this year any hints to further rate hikes at next Wednesday’s meeting could see the Australian Dollar gain strength as global investors will be encouraged by the US’s positive stance.

Wednesday also sees the release of Australian inflation data which is a big factor on monetary policy and any signs of a rise could see further Australian Dollar strength which could push GBPAUD rates back towards 2.

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

Alternatively call me directly on 01494-787478 and ask to speak with Tom Holian

 

 

 

Australian Dollar gains back ground on Sterling due to comments from Bank of England Governor Mark Carney (Daniel Wright)

The Australian Dollar gained back a little ground today that it had recently lost against Sterling following comments from head of the Bank of England Mark Carney. Carney commented that interest rates would not be going up in the U.K for a long time and that the outlook for the U.K economy wasn’t as rosy as many had thought.

Following these comments Sterling lost ground against the AUD and for those looking to sell Australian Dollars a brief opportunity arose even with China and the Chinese issues still lurking in the background.

It would not surprise me to see RBA Governor Glenn Stevens start to look into cutting rates in the near future due to the problems in China and the issues it may cause the Australian economy and should this end up being the case then we may see the Australian DOllar weaken off a little in the coming weeks.

Should China remain quiet then a move back close to 2 may well be a possibility but there is one thing that is for sure and that is that you need to be extremely vigilant if you are looking to buy or sell Australian Dollars in the near future.

We can help you with any exchanges you are looking to make not only in terms of getting the most for your money on an exchange and also helping you with the timing and way you go about carrying it out. We have various contract types to help you avoid adverse market movements or to take advantage of a big shift in your favour 24 hours a day, 7 days a week as this currency pairing is moving around all of the time.

Feel free to get in touch with me (Daniel Wright) if you would like to discuss any potential exchanges you have to make and I will be more than happy to call you or reply to an email personally. You can email me on djw@currencies.co.uk with a brief decription of what you are looking to do along with a contact number and I will be in touch shortly.

 

 

Australian Stock Market Problems caused by China and impact for Sterling vs Australian Dollar Exchange Rates (Tom Holian)

Sterling has started the year with a rise vs the Australian Dollar caused by the huge falls in the Chinese stock market.

This has also hit the Australian stock market and we could see further falls for the Australian Dollar.

However, one big positive is that the iron ore has increased for 11th day in a row and the price of gold has also gone up.

The good news for the Australian Dollar is that as they are heavily reliant by what happens in China and although the stock markets are clearly experiencing big problems with the price of natural resources going up this could even provide the AUD with some strength.

However, with the Chinese releasing Services data tomorrow morning this could cause more volatility and I think we could see further falls for the AUD vs Sterling.

My prediction this week is for Sterling to rise vs the Australian Dollar.

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

For a live price then call me directly on UK number 01494-787-478

 

Will GBPAUD Exchange Rates drop below 2? (Tom Holian)

Sterling vs Australian Dollar has dropped by as much as 13 cents from the high to low during this month and Sterling has fallen across the board against most other currencies.

Although the Australian economy is not performing that well we are starting to see signs of a slowdown for the British economy which has led to the demise of Sterling during December.

When the US Federal Reserve decided to raise interest rates for the first time in almost a decade this has led to global investors increasing their risk appetite and a key factor in the recent strength for the Australian Dollar vs the Pound.

As we enter the new year I expect to see Sterling fall below the support level of 2 vs the Australian Dollar unless we see a change of fortune for the Pound but personally I don’t see this happening anytime soon.

Australian Retail Sales are due next Friday and if they come out strong this could see even more Australian Dollar strength vs Sterling providing some excellent opportunities to sell Australian Dollars.

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

 

 

 

Australian Dollar Prediction for the end of the year (Tom Holian)

Sterling vs Australian Dollar exchange rates have had an interesting month so far moving by as much as 9 cents from the high to low or over 4%.

The month started with RBA governor Glenn Stevens stating that he is happy with interest rates staying the same for the time-being which led to the AUD strengthening vs the Pound during the start of the month.

With the next RBA meeting not taking place until February the discussion of interest rates has been postponed at least for the meantime.

However, Sterling has bounced back against the Aussie Dollar as oil prices and commodity prices continue to tumble.

With the global slowdown this has led to the fall in commodities and as Australia is heavily reliant on its minerals and natural resources this is likely to negatively impact on the Australian Dollar and I would expect Sterling to break through 2.10 in the run up to the festive period.

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

 

 

Australian Dollar Weakens vs Sterling as Commodity Prices Fall (Tom Holian)

Sterling Australian Dollar exchange rates have picked up during the course of today as commodity prices have continued to slump.

Sterling has also risen vs the New Zealand Dollar as well as against the South African Rand.

A decline in lending in the property sector has also led to the RBA possibly looking at interest rates in February at their next meeting.

However, as the rate decision will be some time away the recent comments from RBA governor Glenn Stevens appear to me at least at the moment that we could see the AUD strengthen and today could be just a bit of a blip.

Iron ore prices have again dipped to record lows and this could also be one of the main reasons for the weakening behind today’s exchange rate movement.

Arguably one of the biggest movements for Sterling Australian Dollars could come tomorrow morning with the release of the Australian Unemployment rate.

The prediction is for 6% so anything better could see the AUD regain some of its strength lost during today’s trading session.

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

 

 

Sterling AUD Rates unsure of where to go next (Tom Holian)

Sterling vs Australian Dollar exchange rates have seen a big drop over the last month as RBA governor Glenn Stevens has stated on a number of occasions that Australian interest rates will stay where they are for the time being.

With no RBA meeting until February the recent confirmation of no change has seen the AUD strengthen considerably against the Pound with fears that the level of 2 to the Pound could even be breached soon.

As Australia is so dependent on what happens with China Tuesday’s announcement about Chinese Trade Balance and Imports could have a big impact on Sterling vs Australian Dollars early next week.

Chinese inflation data is also released next week on Wednesday potentially causing a huge amount of volatility for the AUD.

With Thursday likely to be the biggest day of the week for Sterling vs AUD with the release of Australian unemployment data this could provide the real catalyst for movements of the Pound vs Australian Dollar and create the trend in the run up to Christmas.

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