Tag Archives: Tom Holian

Australian economy under pressure and Boris attempts to suspend parliament

The Pound to Australian Dollar exchange rate has been moving in a positive direction recently.

The Australian economy has been struggling as of late owing to a fall in house prices, rising unemployment levels and a cut in interest rates to their lowest level on record at 1%.

The ongoing US China trade war is causing problems for the Australian economy and this is causing an issue for the Australian Dollar.

The Australian economy is heavily reliant on what happens in China as as China is such a large importer of natural resources from down under this can negatively affect the value of the Australian Dollar.

China is growing at its slowest level in over thirty years and the Chinese Yuan is now at a 11 year low.

The ongoing issues surrounding the Chinese economy and its drop in demand for Australian goods has allowed the Pound to push above 1.80 vs the Australian Dollar recently.

There are also rumours that the Reserve Bank of Australia are under pressure to cut interest rates even further from their current levels.

Westpac is calling for an interest rate cut to 0.5% whilst Deutsche Bank has predicted that we may even see rates as low as 0.25% by the end of the year.

However, RBA governor Philip Lowe has suggested that they may even consider Quantitative Easing as a form of monetary easing.

Indeed, he spoke out recently claiming ‘we are prepared to do unconventional things if the economy warranted it.’

In the meantime things are up in the air politically with British Prime Minister Boris Johnson having moved to suspend parliament.

His aim is to remove the chances of MPs trying to legislate against a no deal Brexit. This has caused a lot of movement for GBPAUD exchange and I fully expect this to cause even further moves this week.

If you are in the process of buying or selling Australian Dollars and would like a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Australian housing market causes concern for the Australian Dollar vs the Pound

The Pound has made some gains vs the Australian Dollar over the last few days with another increase during today’s trading session.

The market has appeared to have focused less on Brexit and looked closer as to what is happening with the Australian economy.

Westpac has reported more and more clients recently getting in to trouble, which ultimately has led to many clients going in to mortgage arrears which has led to an increase in the number of bank repossessions.

According to reports Westpac has repossessed a total of 550 up from 482 mainly in Western Australia.

ANZ & the National Australia Bank have also reported an increase in mortgage arrears during the previous quarter.

Australian unemployment remains at manageable levels but the increase in repossessions could be a sign of further problems ahead for the Australian economy.

Could the Pound struggle with Johnson in Europe this week?

In the meantime UK Prime Minister Boris Johnson will be visiting German Chancellor Angela Merkel later this week.

This will be followed by a meeting with French President Emmanuel Macron on Thursday. This could cause further movement for Sterling exchange rates as both leaders are likely to stick to their current stance which is no movement on the current EU Withdrawal Bill.

This could cause movement for the Pound as it steers us once again towards the chances of a no deal Brexit and if this is the case this could see the Pound lose some of its gains vs the Australian Dollar later this week.

Therefore, if you’ve got an upcoming requirement to exchange Australian Dollars then make sure you pay close attention to what is happening politically in the UK this week.

Having worked in the foreign exchange industry since 2003 I am confident that I can save you money on exchange rates when converting Australian Dollars . If you need to buy or sell Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Australian Dollar under pressure against the Pound owing to Chinese data

The Australian Dollar has experienced a problem in recent times vs the Pound owing to a number of different factors.

The Australian economy is currently under pressure domestically caused by the cost of living in high wage growth areas.

This is causing Australian citizens to limit their spending but I think the main issue is that of the uncertainty caused by what is happening with the ongoing US China Trade wars.

Australia is heavily reliant on what happens in the world’s second leading economy so any negative effects on Chinese growth can cause problems for the Australian economy.

US President Donald Trump has recently imposed another tariff, this time totaling 10% on US$300bn worth of Chinese goods. This has caused the Chinese to retaliate by attempting to stop Chinese companies from buying agricultural products in the US.

In the meantime Goldman Sachs have suggested that the trade war could continue to rumble on which does not bode well for the Australian economy and therefore this could continue to negatively impact the Australian Dollar vs the Pound.

The Reserve Bank of Australia has cut interest rates a couple of times already this year and I think we could see more rate cuts coming in the future especially if economic data continues to see a slow down in Australia.

On Thursday, Australia will release it latest unemployment figures. Expectations are for a figure of 5.2% in July so anything different could cause movement for GBPAUD exchange rates. Therefore, if you’re planning a currency transfer involving Australian Dollars in the near future make sure you pay close attention to the data.

If you would like 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.

Tom Holian teh@currencies.co.uk

Australian Dollar highest against the Pound since January 2019

Last night the Reserve Bank of Australia published their latest set of minutes. The focus was aimed at the labour market as well as monitoring economic growth.

Earlier this month the RBA cut interest rates to just 1% which is now the lowest rate in history for Australia.

The general feeling is that the RBA will keep interest rates on hold but are ready to cut further if necessary.

One problem that the central bank faces is that as interest rates are at record lows this leaves them little room to cut even further.

On Thursday of this week the latest set of Australian unemployment data is due to be released.

Depending on the announcement, this could cause some movement for GBPAUD exchange rates so if you’re in the process of transferring Australian Dollars pay close attention to what impact this may have on exchange rates.

Over the weekend Chinese GDP data was published. The growth figures showed 6.2% which was similar to what was forecast.

The data was the lowest level since 1992 so although it is falling it is still extremely high compared to other Western economies.

GBPAUD exchange rates are now trading at their lowest level since January 2019 creating some excellent opportunities to sell Australian Dollars to buy Pounds.

Early next week the UK leadership election should be concluded.

The likely winner is Boris Johnson but whilst there is still some uncertainty as to who will become the next Prime Minister the Pound is facing some uncertainty.

Therefore, once we have a new leader in place could this provide the Pound with a small boost against a number of different currencies including vs the Australian Dollar?

I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident that I can save you money on exchange rates compared to using your own bank so please contact me directly for a free quote.

Tom Holian teh@currencies.co.uk

 

 

Australian Dollar set to improve further against the Pound?

The Reserve Bank of Australia cut interest rates this week to its lowest level in history at 1%. As it was widely expected the markets priced in the rate cut so the value of the Australian Dollar did not feel too much of an impact.

The RBA also hinted that it may be prepared to cut interest rates even further. Since June the RBA has cut rates by 0.5% and so I think the RBA may be tempted to adopt a wait and see approach before changing monetary policy once again.

With the markets expecting interest rates to be cut to 0.75% the GBPAUD exchange rate did not move too much as there was little reason to sell the Australian Dollar.

RBA governor Philip Lowe is due to be speaking on Tuesday and his speech should provide further clues as to when they may make further changes to policy.

Therefore, if you’re in the process of converting Australian Dollars then make sure you pay close attention to Lowe’s speech next week.

The Australian Dollar also improved during the course of this week owing to the latest trade surplus figures on Wednesday. The increase in the goods and services surplus came about owing to the increase in the export market in May.

The other good news came from the Australian housing market as building approvals increased. Although house prices have fallen in recent times down under, the increase in building approvals should be taken as a positive as it means there is an appetite for making money once again in the property market.

Whilst the UK continues to struggle with the uncertainty caused by Brexit and the leadership election I think we could see further improvements in the value of the Australian Dollar.

If you would like to save money on exchange rates when buying or selling Australian Dollars and Sterling then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

Pound to Australian Dollar Forecast – G20 summit and RBA Meeting

Could the US China Trade Wars be finishing soon?

We could be in for a very busy week for GBPAUD exchange rates owing to a number of different factors.

The G20 summit has now concluded and it appears as though talks between the US and China have been improving. Therefore, could this be a sign that the trade wars between the two world’s leading economies are coming to an end?

This should in theory help to strengthen the Australian Dollar against the Pound as the Australian Dollar is often driven by an increase in global risk appetite.

Trump has claimed that he had an excellent meeting with Chinese leader Xi Xingping. He also went on to say that ‘we are back on track’ when questioned about the situation between the two nations.

The Managing Director of the International Monetary Fund Christine Lagarde has also said of the situation ‘While the resumption of trade talks between the United States and China is welcome, tariffs already implemented are holding back the global economy, and unresolved issues carry a great deal of uncertainty about the future.’

Another interest rate cut coming in Australia next week?

Also, next week the Reserve Bank of Australia are due to meet again. Having recently cut interest rates to just 1.25% could we see another interest rate coming on Tuesday?

According to some reports there is a 74% chance of an interest rate cut next week so if this happens we could see losses for GBPAUD exchange rates early next week. There is a huge amount of concern as the housing market in Australia is under a lot of pressure.

Therefore, pay close attention to next week’s RBA decision if you have a currency transfer to make involving Australian Dollars.

I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident of offering you bank beating exchange rates.

If you would like 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.

Tom Holian teh@currencies.co.uk

Pound to Australian Dollar Forecast – Further interest rate cuts planned in Australia

Will Boris be the next Prime Minister?

The Tory leadership election is now down to the final two with Boris Johnson due to go head to head with Jeremy Hunt.

Johnson has been the clear leader since the votes began and the strong likelihood is that he’ll become the new Tory leader when it is officially announced on 22nd July. Johnson won the ballot with 160 votes compared to Hunt with 77. Therefore, unless Johnson makes a calamity in the next month I cannot see why he won’t win.

This has given the Pound some support against a number of different currencies but we are still in a fairly uncertain period for the Pound as we still do not what will happen with Brexit.

Australian interest rates to be cut again in 2019

In the meantime turning the focus back towards what is happening in Australia and things are not going well down under.

Following the federal election which gave the Australian Dollar a brief period of respite the currency has started to weaken again.

The Australian Dollar is close to its lowest level against the US Dollar in history and has started to weaken once again vs the Pound.

Blackrock Inc has shorted the Australian Dollar as they expect that the Reserve Bank of Australia will cut interest rates to 0.5% from the current levels of 1.25%. Australia has been one of the benefactors of having a highly competitive interest rate so with further interest rate cuts expected I think this could have a big impact on the value of the Australian Dollar.

The Australian Dollar has also felt the impact of the ongoing US-China trade wars which appear to have little signs of ending soon. As China is one of Australia’s leading trading partners any slowdown in the world’s second largest economy can often effect the value of the Australian Dollar.

RBA governor Philip Lowe has claimed that the most recent interest rate cut was an attempt to cut unemployment levels as well as helping inflation but I agree with both Blackrock and the Commonwealth Bank of Australia that there are further interest rate cuts coming during 2019.

Therefore, if you’re considering selling Australian Dollars it may be worth getting things organised in the near future.

If you would like to save money on exchange rates compared to using your own bank and would like a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Will the RBA confirm when interest rates will be cut?

Pound improves against the Australian Dollar

The Pound has seen a small increase vs the Australian Dollar since the weekend after struggling recently.

Last week the latest jobs report highlighted a problem for the Australian economy.

The unemployment figures on the surface appeared to be relatively strong at 5.2% but this is still much lower than that in the US, the UK and also New Zealand.

The hidden figure is that of the under-utilisation rate, which measures the number of unemployed and underemployed as a percentage of the labour force.

This is showing concerns as the figures appear to be rising at the moment. The jobs rate does not demonstrate clearly those who are supplementing their income with second jobs.

This means that the Reserve Bank of Australia will be coming under further pressure to consider bringing forward an interest rate cut.

The RBA are due to release their minutes from the latest meeting tomorrow so make sure you pay close attention to the rhetoric used and to discover their appetite for further rate cuts to be brought forward.

With the global economy showing signs of a slowdown I think it is simply a matter of time before the RBA cuts interest rates again and I think this is in part the reason for the Pound’s recent gains vs the Australian Dollar.

This is providing some good opportunities to buy Australian Dollars with Pounds as the Pound  is still feeling the pressure of the Tory leadership election.

At the moment it appears as though the front runner is Boris Johnson and if he does manage to gain power then this could lead to a brief period of certainty for the British economy and this could give the Pound a boost vs the Australian Dollar.

If you would like 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.

Tom Holian teh@currencies.co.uk

 

 

Will the Pound improve against the Australian Dollar?

The Pound has this week fought back against the Australian Dollar. With the RBA having cut interest rates the focus now appears to be on Australian unemployment. The figures showed a problem with the jobs market down under which signals that the Australian economy is under some real pressure at the moment.

The average house price has also been falling in Australia and this is beginning to weigh heavily on the value of the Australian Dollar.

Next week the focus will turn back to the Reserve Bank of Australia when the latest minutes are released.

This will provide an insight as to what the central bank are looking to do in the near future concerning monetary policy.

I think there are more interest rate cuts planned this year so if the RBA gives hints that there may be more coming in the near future I think we could see GBPAUD exchange rates move in an upwards direction.

Therefore, if you’re planning to buy Australian Dollars in the near future it may be worth waiting until the middle of week to take advantage of any potential spikes in the market.

The other news affecting the rates is that of the UK’s leadership election. Currently Boris Johnson appears to be the front runner after winning the first round conclusively. If he manages to get into power this could potentially give the Pound a boost against the Australian Dollar as it will provide some certainty at least in the short term.

I have worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers and I am confident of being able to save you money when buying or selling Australian Dollars.

If you have a currency transfer to make and would like 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.

Tom Holian teh@currencies.co.uk

 

GBP to Australian Dollar Forecast – UK politics and Australian interest rates

The Pound fell by 5 cents against the Australian Dollar during last month after what has been a very uncertain time politically in the UK.

Prime Minister Theresa May has announced her resignation and we are now in the midst of a leadership election within the Tory party.

The likelihood is that the battle for the next Prime Minister will continue until late July, which means more political uncertainty and this could cause ongoing problems for Sterling exchange rates.

The other problem for the Pound is that the next Prime Minister will likely be more of a Brexiteer and this could increase the risks of a no-deal Brexit.

Personally speaking I don’t think a no-deal Brexit will happen which means that we’re likely to have to extend the October deadline, have a second referendum or even potentially have another general election. All of these options care likely to cause problems for the Pound.

However, in the very near future the Reserve Bank of Australia will be announcing their latest monetary policy overnight. The strong likelihood is that we’ll see the central bank cut interest rates to their lowest level on record of just 1.25%.

If after the interest rate cut they announce that there could be further rate cuts coming then I think this could see GBPAUD exchange rates move in an upwards direction which is good news for anyone looking to buy Australian Dollars at the moment.

The Australian economy has been showing signs of problems recently with employment, economic growth and inflation so I think the RBA will signal that there are further rate cuts to be made but depending on the timelines offered this could cause a lot of movement on GBPAUD exchange rates overnight.

Therefore, if you’re in the process of looking to convert Australian Dollars then pay close attention to the decision made as well as the RBA’s accompanying statement.

I have personally worked for one of the UK’s leading currency brokers for 16 years and I’m confident of being able to save you money on exchange rates compared to using your own bank. If you would like a free quote then send me an email with an outline of your particular requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk