Tag Archives: sterling

Australian Dollar Strongest since November 2013 (Tom Holian)

Sterling has continued its demise against the Australian Dollar with trading rates just above 1.77 at the time of writing. It appears as though investors have lost confidence in the Pound over the last few weeks in search of higher interest rates which are available down under.

The Chinese economy seems to be going well at the moment which helps to keep the Aussie Dollar strong and we are now the strongest level since November 2013 making it an excellent time to be transferring Australian Dollars back into Sterling.

Over the next week the Bank of England will meet to decide their interest rates. Personally speaking with inflation dropping recently in the UK I think there will be no change for next Thursday and this could keep the Australian Dollar strong against the Pound next week.

Due tomorrow morning is the Australian Private Sector credit for July and I think this could send GBPAUD rates into the 1.76 levels.

If you have a currency transfer to make and want to be kept updated with currency movements or if you have a requirement to buy or sell AUD then contact me directly for a free quote. Tom Holian teh@currencies.co.uk 

 

 

Will Sterling fall against the Australian Dollar? (Tom Holian)

Sterling has continued to fall this week against the Australian Dollar as inflation in the UK showed a fall and more importantly a big difference between wage inflation rates.

Indeed, this weekend Bank of England member Ben Broadbent went on record to say that weak UK pay growth could persist. The BoE have halved their expectations of wage growth to 1.25% which means that there is less likelihood of an interest rate rise in the UK compared to recent expectations.

The Bank of England minutes which came out on Wednesday showed 2 of the 9 members voted for a rate rise from 0.25% to 0.75% but personally speaking I think with the recent negative movements for inflation I think that it will be now sometime before UK interest rates go up.

GBPAUD rates were higher in late July as UK GDP showed strong movements as well as a strong jobs market but the inflation data has really put paid to Sterling’s previous rally.

Sterling Aussie exchange rates have been trading between 1.77-1.78 towards the end of last week and I expect Sterling to continue to struggle owing to the comments made by Broadbent this weekend.

With China the biggest trading partner for Australia any positive or negative data will impact Sterling Australian Dollar exchange rates. On Tuesday early morning we have the release of an economic outlook index and if strong could see further Australian Dollar strength against Sterling during the early part of next week.

If you have a currency transfer to make and would like a free quote please contact me directly by sending an email Tom Holian teh@currencies.co.uk

 

 

 

Australian Dollar Strengthens against Sterling (Tom Holian)

Sterling had its worst week against the Australian Dollar for a long time following the disastrous Quarterly Inflation Report which showed a big gap between inflation and wage inflation. Although UK unemployment is now at its lowest level in almost ten years and house prices remain strong there appears to be an imbalance in how many people are in work and how much their real money allows them to spend.

Bank of England governor Mark Carney also said on Thursday following the Quarterly Inflation Report that he would not talk about interest rates which also led to speculation that UK interest rates may not rise as quickly as previously suggested. This saw a big sell off from the Pound and a fall below 1.80 against the AUD which has remained below those levels during Friday’s trading session as well.

I have been predicting that Sterling is too strong at the moment not only against the Australian Dollar but also against other currencies. With the Pound so strong this is likely to have a negative impact on British exports as they are less competitive with a strong Sterling so to me I think it’s a matter of time before the Pound experiences a little fall.

Next week sees the release of UK inflation data on Tuesday and the Bank of England minutes on Wednesday.

Both announcements are due to result in volatility for GBP vs AUD exchange rates so if you are worried about what to do with your currency transfer then contact me directly for a free quote to buy or sell Australian Dollars and I’m confident I can save you money on exchange rates compared to using your bank. Send me an email Tom Holian teh@currencies.co.uk

Prediction this week is for Australian Dollar strength.

 

 

 

Australian Dollar Forecast for Today (Tom Holian)

Sterling is creeping up this morning in anticipation of the UK unemployment figures due out in less than an hour.

The expectations are for a fall to 6.4% the best in many years which if comes out the same or better we could see Sterling rally across the board and strengthen against the Australian Dollar.

Chinese Retail Sales fell overnight from 12.4% to 12.2% which has weakened the AUD against the Pound. China is Australia’a leading trade partner and is a huge importer of Australian resources. Generally speaking if results are poor in China this has a detrimental effect on the Australian Dollar.

An hour after the UK unemployment data and arguably more important is the release of the Quarterly Inflation Report. Inflation in the UK has hit 1.9% recently which is close to the Bank of England’s target of 2% and this is turn could put further pressure on the BoE to raise interest rates sooner than the markets currently expect which is likely to lead to Sterling strength.

US Retail Sales are announced later this afternoon and this is often one of the biggest market movers of the month. If the results are strong this could increase the appetite for more risk so could potentially see the AUD fightback against the Pound later this afternoon.

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 and I look forward to hearing from you. Working for one of the UK’s leading UK based currency brokers I am confident we can offer you competitive exchange rates.

Tom Holian teh@currencies.co.uk 

 

 

 

Sterling Australian Dollar Exchange Rates Fall (Tom Holian)

Sterling vs the Australian Dollar has fallen at the end of the week owing to some very poor data released in the UK on Friday.

The week started strongly for the Pound and increased even further following the Australian unemployment figures which were the worst in over ten years down under. This sent Sterling in an upwards direction against the Aussie but Friday’s UK trade deficit which has increased swiftly changed the movement and sent Sterling plummeting against the Aussie Dollar providing some good short term selling opportunities to convert AUD into GBP.

The sanctions imposed on Russia could also be rather harmful for the British economy which trades approximately 7% of is exports with Russia. Germany is as much as 30% and with the UK and Eurozone so closely linked for trade this could have a negative impact for GBPAUD exchange rates if the sanctions continue.

When there is geopolitical uncertainty this often leads to riskier currencies including the Australian Dollar to weaken. However, as the US is involved in Iraq and the UK and Eurozone are impacted by the ongoing issues with Russia it could be argued that global investors are seeking safety in the Australian Dollar.

The largest trading partner with Australia is China and this morning showed Chinese inflation data as expected so this will likely give the Australian Dollar some short term strength going into early next week.

UK unemployment data is due on Wednesday morning and will closely watched by anyone with a GBPAUD currency transfer to make.

If you have a currency transfer to make and want to save money compared to using a bank or if you would like to compare rates against your own currency broker then contact me directly for a free quote. Tom Holian teh@currencies.co.uk

 

 

 

Australian Employment change figures due out this evening, look out for AUD volatility

Australian employment change figures are due out overnight tonight and expectations are for the rate to remain at 6% which is still fairly healthy looking at some of the other figures recently released around the globe.

Personally after speaking to many clients over in Australia it does appear that parts of the country are starting to feel a bit of a slowdown and I would not be surprised to see the employment rate come out a little worse than expected but as usual pretty much anything can happen. Governor of the RBA Stevens still seems fairly upbeat about how the economy is performing at present after being quite the opposite merely a number of months ago.

The Australian Dollar made minor gains against Sterling this morning as we saw fairly poor industrial and manufacturing figures out for the U.K this morning but it still seems like the the exchange rate for GBP/AUD is stuck on the pivotal point of 1.80 waiting for the next big piece of news.

If you have a pending currency transfer to carry out involving either buying or selling the Australian Dollar then it is well worth contact me directly.

You can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of your requirements and I will be more than happy to contact you personally. I have had thousands of people get in touch through this site and many have found they have made a saving against companies such as OZ Forex and HIFX so for the two minutes it takes to get in touch you may find you save a lot of money.

 

Strong US GDP Weakens the Australian Dollar (Tom Holian)

Sterling vs the Australian Dollar has broken through 1.81 again following the very strong data from the US published yesterday afternoon.

US GDP was confirmed at 4% and was a huge increase compared to the first quarter which only just hit 0.1%.

Personally, I was not surprised at the figures as prior to the first quarter the US economy was in a good place and most of the economic data was relatively positive. During the first three months of the year a large part of the country was covered in snow which meant that business in some parts came to a standstill.

With the US economy now back on the right path this could mean global investors ploughing their funds back into the US and taking it out of the Australian Dollar. This could be one of the reasons for the overnight weakness for the Aussie against Sterling.

Buildings approvals down under have also taken a turn for the worse and showed a fall of 5% in June. May’s result showed a jump of 9.9% so it shows how volatile this market is and when markets moved so dramatically this can often be unsettling for the currency involved.

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 Tom Holian teh@currencies.co.uk

 

 

 

Will Sterling rise this week? (Tom Holian)

Sterling vs the Australian Dollar has remained just above 1.80 for most of last week even after the interest rate rise in New Zealand.

Typically if the economy in New Zealand strengthens this tends to have a knock on effect on the Australian Dollar. It could be argued that this is one of the reasons why the Aussie Dollar remained at 1.80 instead of rising towards 1.82-1.83 levels.

Last week saw the announcement that UK GDP has now reached the peak levels last hit in 2008 pre-credit crunch. This helped to strengthen the Pound across the board against all major currencies and supports the comments from earlier this month when the International Monetary Fund predicted that the UK would be the fastest growing economy in the G7.

Global investors have been unsure recently where to place their funds and it appears as if Sterling is the main benefactor at the moment. With Sterling having reached 2 year highs against the Euro and 5.5 year highs against the US Dollar the Pound seems to be the currency of choice.

I think it is only a matter of time before the Pound gains against the Australian Dollar again as the IMF has also suggested problems with the overall global growth forecast.

As Australia is so heavily reliant on what happens in China if a global slowdown does occur China will be one of the main economies to struggle which in turn could have a huge negative impact on the Aussie Dollar in the longer term. Whether or not the IMF comments are accurate can be argued either way but if they come close to being true this could seriously weaken 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 to transfer currency then contact me directly for a free quote Tom Holian teh@currencies.co.uk

 

 

 

The Australian should remain strong

Despite international tensions rising investors worst fears are failing to be realised and the show goes on! Historically speaking there is always something to be fearful of. A Chinese crash landing, a property crash, a looming stock market crash. All of these fears have so far failed to materialise and consequently the Aussie remains supported offering investors good value.

WAR – What is it good for? Well absolutely nothing, certainly not for the global economy! As global tensions seem to cool markets have sucked up profits on the back of recent currency movements. Next week there isn’t a huge amount of Aussie data so I would expect the continuing global political situation to drive risk appetite and therefore have some impact on Aussie rates.

With such uncertainty around there is lots of potential for some unforeseen spikes in and out of your favour. Spikes of up to one or two cents should not be discounted as news comes out and in these scenarios consensus and expectation can fly out the window as markets move according to fresh news and sentiments. In these situations it is those prepared who capitalise so if you are planning anything soon with the Aussie why not make some contact with us to see if we can give you some useful information?

Weaker UK retail sales figures pushes GBP/AUD back through 1.80 (Mike Vaughan)

Sterling has started the day on the back foot against a host of currencies including the Australian Dollar following some weaker than forecast retail sales figures this morning. An expected figure month on month of 0.3% came in at 0.1% causing a shift against the value of sterling. This caused a continuation of the recent trend for GBP/AUD which has now sat range bound between 1.79-82 for a number of weeks. With current levels near the bottom end this weeks shift could be an opportunity for anyone selling AUD.

Tomorrow will also see another important release from the UK with the latest GDP figures released at 09:30. Should these track today’s weaker retails sales then another shift against the pound could be seen.

Should you have an upcoming foreign exchange transfer to arrange and you would like more information on the currency service we provide then please contact the office on 01494 787478 or email me with a brief overview of your currency requirement and I will happily contact you with more information. As a specialist foreign exchange broker we have multiple contracts available the help maximise our clients transfer. Please email Mike at mgv@currencies.co.uk for more information.