Tag Archives: sterling

Australian Dollar Fights Back against Sterling (Tom Holian)

Sterling started the day hitting a new record high against the Australian Dollar briefly touching as high as 1.93 which triggered a lot of Limit Orders at these levels.

However, since that rate we have seen the Australian Dollar recover against the Pound now trading into the mid 1.91 levels.

With unrest in Russia this has caused a big sell off from riskier currencies including both the New Zealand Dollar and Australian Dollar as investors are concerned about the stability of the global economy. Indeed, with oil prices having dropped to a 5 year low this week this had also led to the Australian Dollar weakening.

The Reserve Bank of Australia has hinted that it wants the Australian Dollar to weaken in order to rebalance the economy which has shown signs of struggling recently.

Tomorrow, the RBA releases its bulletin which will reveal further information about economic and financial developments and this could signal further Australian Dollar weakness later this 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

 

 

GBPAUD rates SPIKING

GBPAUD rates have climbed significantly over the last few weeks and it is something I generally expect to continue. With commodity prices falling along with demand from China the Australian economy has been weakening along with its currency making it cheaper to buy.  We have key data again this evening from China and Australia and both are expected to show a similar stance resulting in more gains for anyone with AUD to buy.

The question really now is when will levels peak, when is the best time to buy?

My view, 1.90 would be a fantastic opportunity but with it only being less than 1% away and rates currently at a near 4 year high I would not ride to much soon.

Sellers are however in a concerning situation receiving significant less than they have been, AUD has weakened by several percent this last week and smiles are certainly upside down.

For more information on how to maximise your transfers please feel free to get in contact, Steve Eakins is my name and you can contact me on hse@currencies.co.uk

GBPAUD Exchange Rates 5 YEAR HIGH (Tom Holian)

Sterling vs the Australian Dollar exchange rates have hit a 5 year high overnight after a very low business confidence survey published by the National Australia bank.

NAB one of Australia’s big four banks has called for a rate cut in 2015 as it downgraded its growth outlook and predicts that unemployment down under would rise.

Business confidence in the lowest since mid 2013 and this has caused massive Australian Dollar weakness.

The mining sector which is affected by Chinese demand saw a reading of minus 12 points which is very low and commodity prices have continued to drop to multi-year lows.

The Reserve Bank of Australia will next meet in February and the chances are we could see an interest rate cut which is another reason for the huge weakening of the Australia Dollar recently.

Indeed, the talk from the NAB also adds support to the same view from Goldman Sachs and Deutsche Bank who have also called for an interest rate cut next year.

If you have a currency transfer to make and want to take advantage of these 5 YEAR HIGHS and save money compared to buying currency with your bank  then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Sterling Strong against the Australian Dollar (Tom Holian)

Sterling ended the week strong against the Australian Dollar following a few comments from leading economists from down under who are suggesting a rate cut is necessary.

Comments from Goldman Sachs, Deutsche bank and Westpac have all called for an interest rate cut next year of between 0.25%-0.5%. The Australian export market has slowed recently owing to a drop in demand from China and if the currency is weakened by an interest rate cut this will likely help to support the Australian economy.

Indeed, the Chinese economy has slowed in recent years and this is one of the key factors in the Australian Dollar weakening.

This week the Bank of England kept interest rates on hold which kept Sterling strong.

Over this weekend the Financial System Inquiry has been published which is aimed at increasing competition in the Australian banking industry. This could impact the Australian Dollar exchange rates over the next few days.

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

 

 

 

AUD opportunity as rates SPIKE

The Australian Dollar has rebounded this morning as profits were taken by traders following the SPIKE up yesterday. A Spike is when the market moves quickly to price in new information in to the price and can give the best opportunities for  buyers. Here we offer a SPIKE NOTIFICATION service for people who have an interest – to register for this please email me directly with your contact details and summary of position, my email address is hse@currencies.co.uk. The reason for the SPIKE this week was commentary by the Reserve bank of Australia’s Philip Lowe who states that the currency was ‘too high’ and that it should ‘depreciate further’ this caused a SPIKE in the market giving AUD buyers a 4 cent higher level in the space of only 2 days!

Today as as I say the profit has been taken so levels are starting to flatten out. There is still an excellent buying opportunity for anyone needing to buy AUD. The price of iron ore have also fallen to the lowest seen since 2009 which is adding further pressure on the AUD considering their substantial iron ore exports.  There was a thought that the next high would be 1.90 but I disagree, anything over 1.85 is a good level at the moment.

For a full break-down including the potential strategies you have available to you please get in contact, email myself, Steve Eakins, if you would like a personal response via hse@currencies.co.uk

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