Will GBPAUD drop below 2 AUD / 1 GBP?

With the recent shifts in sentiment on the Australian dollar and sterling, GBPAUD levels have dipped to rates not see since July. Further uncertainty over the UK economy and improvements in Australian and Chinese data could easily help the rate to climb further to 2 or 0.5 on AUDGBP. Exchange rates to buy Australian dollars had risen to multi year highs this year as economic uncertainty in Australia and China combined with high expectations over sterling to present very close to more ‘historical’ rates.

With the recent changes in sentiment sterling is crashing and the Australian dollar is finding favour. It is not all plain sailing and Chinese Import data overnight showed imports falling by 17%. However I believe the worst fears surrounding the Australian economy will not be realised and that the overall strength of the Chinese economy will keep the Australian dollar supported.

Further improvements on the rate for AUD sellers look like a strong possibility and if you are looking to exchange AUD for GBP current rates represent a very good much improved opportunity. I think the current rally which has taken us to this point is likely to persist and think if you need to buy AUD moving sooner rather later will be best. AUD sellers might wish to hang just a little bit longer to see what happens tomorrow and Thursday. Tomorrow is UK Unemployment, Thursday Australian Unemployment data.

If you need to move any funds internationally I am here to assist with a rate which I am positive will save you money over the competition plus offer assistance with the timing and planning of any deal as well. For more information please contact me Jonathan on jmw@currencies.co.uk

Sterling up against the Australian Dollar following poor Chinese data (Tom Holian)

Following some big falls for Sterling vs Australian Dollar exchange rates during the last month we have seen a reversal of fortune overnight following some very weak data published in China.

Chinese import data showed a huge fall of -17.7% and exports were also extremely weak.

Oil prices have also fallen to their lowest level in 6 weeks, which is likely to raise concerns of a global slowdown.

The Australian Dollar is heavily influenced by what happens in China as they are Australia’s largest trading partner and any slow down sees often sees weakness for Australian Dollar exchange rates.

With commodity prices still close to a 16 year low I think the long term forecast for the Australian Dollar is rather bleak.

Chinese GDP is now below 7% and with fears of further slowdown in the future this could impact heavily upon the Australian economy.

Tomorrow Chinese inflation data is published and this could show more problems for the economy and could perhaps hint that another interest rate cut for the world’s second largest economy could be round the corner.

Arguably the biggest data release of the week will come in the form of Australian unemployment data due out on Thursday.

Expectations are for 6.3% so anything different could cause volatility for Sterling vs Australian Dollar exchange rates.

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 Forecast – Economic data due out this week

I thought i would let you all know the key economic data due out this week which may have an impact on the value of the Australian Dollar.

The AUD is on a great run of form at the moment but there is plenty of data out this week that may reverse the trend.

Times are based on the time in Sydney – If you are based in the U.K then you need to bear in mind that the release will be 10 hours earlier than stated.

08:40 AU AUD RBA Deputy Governor Lowe Speech
12:30 AU AUD National Australia Bank’s Business Confidence (Sep)
12:30 AU AUD National Australia Bank’s Business Conditions (Sep)
13:00 CN CNY Imports (YoY) (Sep)
13:00 CN CNY Exports (YoY) (Sep)
13:00 CN CNY Trade Balance (Sep)
n/a CN CNY New Loans (Sep)
n/a CN CNY M2 Money Supply (YoY) (Sep)
10:30 AU AUD Westpac Consumer Confidence (Oct)
12:30 CN CNY Consumer Price Index (YoY) (Sep)
12:30 CN CNY Producer Price Index (YoY) (Sep)
12:30 CN CNY Consumer Price Index (MoM) (Sep)
11:30 AU AUD RBA Foreign Exchange Transaction (Sep)
11:30 AU AUD Part-time employment (Sep)
11:30 AU AUD Fulltime employment (Sep)
11:30 AU AUD Employment Change s.a. (Sep)
11:30 AU AUD Unemployment Rate s.a. (Sep)
11:30 AU AUD Participation Rate (Sep)
12:00 AU AUD Consumer Inflation Expectation (Oct)
12:30 AU AUD New Motor Vehicle Sales (MoM) (Sep)
12:30 AU AUD New Motor Vehicle Sales (YoY) (Sep)
12:30 AU AUD Financial Stability Review

If you would like an explanation of what any of these releases mean or the impact they may have then you are more than welcome to contact me (Daniel Wright) personally and I will be more than happy to help you.

All of the writers on this site work for an award winning currency brokerage which has won awards for both customer service and exchange rates.

We actually deal with currency exchanges ranging from £10,000 to multi million Dollar transactions and will be more than happy to speak with you to see if you can get a better deal than you are currently receiving with from your bank or current choice of currency broker… Chances are we will.

All you need to do is email me (Daniel Wright) on  djw@currencies.co.uk and I will be more than happy to get in touch.



Australian Dollar set to strengthen further overnight on Monday (Joshua Privett)

The Australian Dollar has been going up against the Pound almost in a straight line over the past three weeks, as positive news on the Dollar is met by the opposite for the UK Pound Sterling.

On Friday, the worst construction data for two years in the UK economy was released to show the sector had contracted by more than 4.3% in a single month. As such Sterling weakness from this dismal snapshot of British performance caused GBP/AUD to fall down to 2.08 from initial highs of 2.11 that morning.

The next major event which may affect GBP/AUD rates further will be the Deputy Governor of the Reserve Bank of Australia Philip Lowe’s speech on Monday night UK time.

The recent string of speeches by himself and his superior Glenn Stevens have regularly caused Australian Dollar strength in the past month as they seek to assuage fears about the Chinese slowdown on the Australian economy. Pointing out that the increasingly positive releases of data concerning the Australian economy prove that Australia is geared to weather any storm, prolonged or short.

With some glimpses of rising prices on the commodities market, with oil prices up 5% in the past few weeks and iron ore following a similar suit, their positive tones have a lot more weight behind them. I would not be surprised to see further falls on GBP/AUD which will create tempting opportunities for AUD sellers who have regularly seen rates move against them since the start of the year.

Contact me on jjp@currencies.co.uk if you have an Australian Dollar requirement, whether buying or selling, over the next few weeks. Even if you do not require your currency until the end of 2015, any favourable levels you see now and want to secure to avoid future movements against your favour can be done so by fixing the current rates of exchange. I can also offer you a free quote on your transfer and guarantee to beat any rates offered elsewhere 01494 787 478

Sterling vs Australian Dollar at lowest price for months (Tom Holian)

Sterling vs the Australian Dollar has fallen by over 5% recently following a 6 year high to buy AUD$ last month.

With commodity prices having fallen to a 16 year low year last month this was what has previously caused the AUD to weaken.

However, as fears of a global slowdown have been partially allayed by IMF chief Christine Lagarde this has led to a bit of confidence returning to the Australian Dollar.

The news of the UK GDP being downgraded recently from 2.6% to 2.4% and the US deciding not to increase interest rates for the world’s leading economy this has renewed investor confidence in the AUD.

Indeed, the US Federal Reserve has decided not to raise interest rates and their minutes from earlier this week suggested that owing to to the slowdown in China they may not raise rates as soon as previously thought.

UK inflation data due out on Tuesday could reaffirm the Bank of England’s recent decision to keep interest rates on hold at an historic low.

The expectation is for 0% so anything lower could add more support to keep rates on hold for a long time to come in the UK.

Later this week Australian unemployment data is released.

This could put paid to recent advances for the Australian Dollar vs Sterling as if the data is poor we could see the AUD weaken.

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




Small Window of Opportunity for AUD Sellers (Daniel Johnson)

With Interest rates kept on hold in Australia, we have seen AUD strengthen significantly over Sterling. Gone are the days of 2.20 for AUD buyers, I did tell a vast number of clients to move when we were above 2.18, but many chose to hang on to the out of reach 2.25 +. Procrastination can prove costly.

GBP/AUD currently sits in the 2.09s, I do however think we will see Sterling rebound. There is a real problem with property inflation and it soon may become unsustainable. This is also coupled with slowing growth in China’s, which I personally think is a lot worse than they are letting on.

If you are an AUD seller I would be looking to move ASAP to take advantage of current market conditions. AUD buyers short to medium term I think 2.14-2.15 is a realistic bench mark to move.

I do have several large GBP-AUD trades going through in the coming days that potentially I could tag new clients on to and achieve a very competitive rate. Please do get in touch if this is something of interest. I will guarantee to beat any bank or brokerage’s exchange rates.

I am currently offering a free rate alert service, just drop a line or e-mail with your currency requirements including your time scale and the levels you are hoping to obtain and I will notify you of  any significant movement.

Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me on dcj@currencies.co.uk or call on 01494 787 478 and ask for Daniel Johnson.




Sterling continues to lose ground against the Australian Dollar, all eyes now turn to next weeks Australian Employment figures. (Dayle Littlejohn)

Sterling continues to slide today against the Australian dollar and it seemed the UK interest rate decision had no impact on the currency pair.

The vote was split 8-1 in favour of keeping interest rates on hold at 0.5%. The key reasoning for rates being held at 0.5% is inflation is still at a worrying low and the Bank of England do not anticipate the figure will rise anytime soon.

Overnight the latest home loan figures are to be released for Australia. The consensus is a rise to 5.0% from last month’s figure of 0.3%.

It will be interesting to see if this improvement does transpire as it seems Australia believe that consumer confidence has returned, as a result of the Chinese stock market stabilising. I’m unsure!

For clients buying or selling Australian dollars, Thursday next week is set to be an extremely volatile trading day, as Australia releases their latest Employment figures.

I expect China will have weighed down on employment figures and we could see a good buying opportunity throughout Thursday’s trading session.

To maximise trading next week placing a limit order and a stop loss at the same time in order to protect yourself against major market movements. For further information regarding the two contract options and a free quote, feel free to email me directly with your requirement and a telephone number and I will call you when back on the trading floor. drl@currencies.co.uk Dayle Littlejohn.

Will GBP/AUD Rates Dip Further? (Matthew Vassallo)

The AUD has found some support against GBP over the past couple of weeks, with the pair moving back towards 2.10 at the low. This is a marked improvement on recent levels, with the AUD slipping below 2.20 only a few weeks ago. Many investors had expected this slide to continue, with the Australian economy suffering heavily due to a major slowdown in their economy, particularly their export trade. This was due to the on-going problems facing the Chinese economy, who as regular readers will know are Australia’s largest trade partners and although they are by no means out of the woods yet, a couple of factors seem to have eased some pressure in the short-term.

Many investors had anticipated the Reserve Bank of Australia (RBA) would cut their base interest rate further, in order to help ease pressure on the economy but when this did not occur the markets took it as a positive and a sign of strength and this positively impacted the AUD, which gained value as a result. The Australian economy also received a boost with a huge spike in Chinese tourism, which again helped breed some market confidence. These factors combined have helped to drive GBP/AUD rates down and I feel the AUD will now find support under 2.20.

These was some key data releases this morning for the UK, with the latest Bank of England (BoE) interest rate decision and subsequent minutes. As anticipated rates were kept on hold at 0.5% and with an 8-1 vote against a rate hike, conditions have not changed from last month. With no rate hike foreseen until at least the 2nd quarter of 2016, we may find the AUD puts pressure on the 2.10 mark over the coming weeks.

If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me directly on mtv@currencies.co.uk

GBP/AUD rates still sliding and should continue (Joshua Privett)

The slide on GBP/AUD continues and rates have now crept lower into 2.11.

The Dollar is continuing to attract investment with the Reserve Bank of Australia’s recent decision not to cut interest rates further and confident statements about the nation’s ability to ‘weather any storm’.

This is in sharp contrast to recent announcements about the UK’s future interest rate timeline which has recently produced a rather negative spin compared to the Dollar’s positive one.

Arguably the single largest determinant of a currency’s value since the financial crisis of 2007/8 has been their timeline for raising interest rates from these historic lows. Sterling has been gaining ground against most of its major counterparts since the start of this year, with regularly postings of strong data, this rate rise appeared to be just around the corner.

However, record low inflation has hit the UK and has become ingrained. Fears of lowered global demand following events in China are also causing hesitancy in raising rates alongside this, so now a rate hike isn’t expected until the back end of 2016.

The disparity between positive and negative news surrounding the interest rate saga between the two nations is why rates have corrected so sharply for GBP/AUD in recent weeks, and why this trend seems to be continuing unabated.

Tomorrow will likely see confirmation that this trend will follow-on for the rest of October when the interest rate decision for the UK economy is announced, as well as a statement about future financial policy. With no change in the current situation in the UK, it is more likely than not that further Sterling weakness will follow when no solid timeline for an interest rate hike in the near term is announced.

Anyone with AUD to buy in the short term should be looking to move before this announcement at 12 pm tomorrow afternoon. I strongly recommend contacting me on 01494 787 478 and asking the reception for Joshua to receive a competitive quote on your transfer. We can discuss a strategy based on your situation to make sure your Dollar return is maximized, even if your requirements are not for a few months time. jjp@currencies.co.uk 


Will the Aussie weaken again?

With the recent fallout from China not living up to full expectation we have seen the market for Aussie dollars improve with some big gains following their decision down under to keep their base interest rate on hold. Expectations for the RBA to cut rates were not fulfilled and we have seen some big improvements for anyone looking to sell AUD for pounds and Euros.

The likelihood is that now we will see the AUD make even further against a much weaker pound and anyone who is buying Aussies for sterling really ought to make sure they have made plans for the rate to get even worse in the coming weeks and months as sterling slumps and the Aussie finds favour once again.

China is not about to slowdown and the Australian dollar represents excellent value to investors who had previously been holding US dollars but have given up owing to their lack of commitment to raise interest rates. All in all it does look like the Aussie is going to become more and more expensive to buy so if you have any currency transfers to consider involving the Aussie please get in touch with us to learn more or email me Jonathan on jmw@currencies.co.uk