Issues for the recent Australian Budget and impact on the Australian Dollar vs Sterling (Tom Holian)

The Pound vs the Australian Dollar has improved dramatically in recent weeks after the recent interest rate cut by the Reserve Bank of Australia as well as the announcement of the election due in just a few weeks.

With the UK struggling to deal with the uncertainty of what may happen on 23rd June when the UK decides its future about whether to Remain or Leave the European Union this is clearly causing problems for Sterling.

However, Sterling has actually improved against the Australian Dollar during this time as it appears as though the Australian Dollar is struggling more than the British economy.

This weekend Malcolm Turnbull’s recent budget has been challenged about their ability to charge company tax and this could according to some analysts cause a black hole of AUD$8 billion in revenue.

This is clearly not a good sign for both the Australian economy as well as the current government and this is likely to add to the uncertainty causing the Australian Dollar to weaken against the Pound.

This could be further good news for anyone looking to exchange Sterling into Australian Dollars.

On Wednesday Australia releases its latest set of GDP figures and with the prediction due for 2.7% year on year I think we could see them miss the target which could see Sterling break past its recent highs vs the Australian Dollar. Australian Retail Sales, Import & Export data is due for release on Thursday and I think overall the Australian Dollar is set for a difficult week ahead.

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

 

 

Could GBPAUD drop back below 2? (Dayle Littlejohn)

In the last 4 weeks GBPAUD had gained over 17 cents for two main reasons:

1 – Australian inflation plummeted which led to the RBA cutting interest rates from 2% to 1.75%

2- There has been a change of sentiment in the UK in regards to the EU referendum. Polls are suggesting the In campaign are clearly ahead.

I believe there is every chance in the next 4 weeks GBPAUD will fall back into the 1.90s. My reason for this it seems the UK Government  (Tory party) are clearly divided and this is going to put pressure on the Pound.

Former Mayor of London Boris Johnson has been criticising David Cameron last manifesto, in regards to the promises he has made about immigration. According to the Office for National statistics the difference between the number of people coming to the UK for at least a year and those leaving, rose to 333,000 in 2015. The Governments target was below 100,000.

David Cameron response to the Former Mayor of London has been to acknowledge that immigration needs to be tackled however he believes the out campaign are trying to get away from the fact that a ‘Brexit’ according to 9 in 10 economists will have a major negative impact on the UK economy.

For people reading this website for the first time the currency company I work for enables me to achieve clients up to 5% better exchange rates than the high street banks and other brokerages when buying or selling Australian Dollars.

I specialise in property purchases and sales. Therefore if you are buying or selling a property this year and want to save money by achieving the best possible exchange rates but also want help in timing your transfer, get in touch by emailing me on drl@currencies.co.uk.

If you are already using a brokerage and have stumbled across this article because you are simply looking for information in regards to the currency market, I want to help you save as money compared to the brokerage you are already using. For a comparison email me with the exact figures and the currency pair and I will email you with our live buying price.

Alternatively if you would like to discuss your requirements over the phone call me Tuesday morning on 01494-787478 and ask to be put through to Dayle Littlejohn.

 

 

Sterling Australian Dollar exchange rates remain high but for how long? (Tom Holian)

Sterling exchange rates have been on an upwards trend against all major currencies recently and the spike vs the Australian Dollar has arguably been the most noticeable.

Sterling has rallied following the recent opinion polls which have put the Remain camp in the lead and the AUD has weakened against a basket of major currencies and this has magnified the effect between Sterling and the Australian Dollar.

The weakness of the Australian Dollar has been caused by the recent interest rate cut down under from 2% to 1.75% and this has caused investors to sell off the AUD in favour of better returns elsewhere.

With another potential interest rate cut this year the possibility of this happening has now been priced in.

RBA govenor Glenn Stevens spoke about the recent policy change on Tuesday and his comments about further stimulus has caused GBPAUD exchange rates to rise.

Next week there are a number of data releases that could cause volatility for Sterling vs the Australian Dollar including New Home Sales on Monday and Thursday with the release of Trade Balance, Retail Sales, Import and Export figures.

The main driving force behind Sterling exchange rates is the sentiment surrounding the EU referendum and if we see further polls announced in the next few days in favour of the Remain campaign this could see sterling move higher.

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

 

 

Australian Dollar feeling the pinch as rates against Sterling sail through 2 and stay there (Daniel Wright)

As predicted in a post of mine towards the start of the month the Australian Dollar has had a rough ride lately and the Pound has come well and truly into fashion.

We have seen exchange rates cruise up and above the 2 level for those looking to buy Australian Dollars with Sterling and this is due to a number of factors:

It appears that the remain campaign are edging ahead in the latest referendum polls and this has led to a lot of uncertainty coming away from the Pound and because of this the Pound has started to gain back value.

Interest rates have recently been cut over in  Australia too, an interest rate cut is generally seen as negative for the currency concerned and a rate hike is seen as positive, so the recent cut for Australia has led to the Australian Dollar falling out of fashion and losing ground against most major currencies.

We are fairly quiet on the data front for the rest of the week but with this particular pairing being open to movement on global risk sentiment do not think that we will not see much in terms of market volatility.

If you have the need to buy or indeed sell Australian Dollars for your business, due to a property purchase/sale or for any other reason then it is important to have a proactive broker on your side and one that can get you the very top levels of exchange – It is very easy to settle for second best in this market but it is key to realise that even the slightest improvement in a rate of exchange can save you a huge sum of money.

If you would like to have a brief discussion with me (Daniel Wright) as to how I will be able to assist you with any pending currency exchange then feel free to email me directly on djw@currencies.co.uk  and I will be more than happy to get in touch with you personally. We can cater for people inside our outside of the U.K and carry out bank to bank transfers.

Buying Australian Dollars – 3 Month High

The Australian dollar has continued to slide further taking the Aussie down to a 3 month low. At present this is a story of both dollar weakness and sterling strength as far as GBP AUD is concerned. It has certainly presented anyone buying Australian dollars with an excellent opportunity whereas anyone selling Australian dollars will be very much feeling the pinch in a big way.

The dollar has continued to weaken since that interest rate cut from the Reserve Bank of Australia (RBA) at the start of the month and has not recovered to date. The problem lies in the view that another rate cut is expected from the RBA at some point in the future which is putting even more pressure on the dollar. RBA governor Glenn Stevens is not even having to jawbone the currency for it to weaken, it is doing that by itself.

There has been of late a gradual climb in the price of oil which should in theory help the Aussie going forward although it remains in question whether the price of oil will in fact continue to rise. Some of the rise in the price of oil has been as a result of recent supply issues from countries including Canada, where production was halted after the Alberta wildfires. As such the rise to date may not be sustainable and hence the dollar may tumble that bit further if oil prices slide again. I feel however the dollar should be bottoming out about here having seen a sizeable move higher above $2 for GBP AUD.

The two most recent polls from Britain have put the Remain campaign in front by some way and this has resulted in a sudden rise in the price of the pound against all of the major currencies. I would remind anyone with a currency requirement that it is still a long way to go before 23rd June with another month to go of fierce campaigning. The gloves may already be off but with one full month to go I feel it is too early to be putting down favourites. Expect major fireworks for sterling exchange rates as we approach the date!

There are a number of data releases for Australia next week although Australian GDP numbers are likely to take centre stage. Any upturn here should see the dollar rally and find a new level of support away for its recent lows.

If you have an upcoming GBP or AUD currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at jll@currencies.co.uk

GBPAUD now comfortably trading above 2.00, further AUD weakness looks likely (Joseph Wright)

The current upward trend for GBP/AUD is yet to show any signs of slowing down, as once again today Sterling has far gained on the Aussie with the high of the trading day so far at 2.0388.

Sterling sellers are currently in a far better position now than just a few weeks ago as Sterling’s upward bounce has been significant and brought on due to a number of different factors.

The principle driver of GBP exchange rates presently is the predicted outcome of the EU Referendum next month. The relationship between the majority of GBP exchange rates and the predicted EU outcome is very straightforward, the less likely a ‘Brexit’ the stronger Sterling becomes and vice-versa.

The reason Sterling’s gains against the Aussie have been so magnified is become at the same time prominent UK bookies and pollsters are suggesting the ‘Remain’ campaign has gained a strong lead, members of the Reserve Bank of Australia have become increasing dovish regarding the economic outlook for Australia, whilst at the same time they’ve cut the Interest Rate down from 2.00% to 1.75% and hinted at further cuts in future, which has softened the Aussie’s value in general and particularly when compared with a surging Pound.

It’s worth noting that last night RBA Governor Glenn Stevens made it clear that the door is open for further monetary loosening in future, and his speech saw AUD exchange rates drop across the board.

Moving forward, I’m expecting Sterling’s gains to subside but I can see the pair leveling out and trading within the current range for some time. I think GBP/AUD 2.00 will act as a support and I don’t expect the pair to fall below 2.00 this month or next unless there’s a big swing in the ‘Brexit’ polls.

If you would like to discuss an upcoming currency exchange you plan to make involving Sterling and Aussie Dollars, feel free to contact me regarding my forecast. You can also take advantage of the high levels of security and award winning exchange rates offered by the specialist foreign exchange brokerage where I work, just email me (Joseph) on jxw@currencies.co.uk or call me directly on 01494 787 478.

Buying Australian Dollars – Steve Eakins

GBPAUD rates at near 3 month HIGH

Buying AUD has been becoming cheaper and cheaper to do. GBPAUD rates have climbed by nearly 7% in the last 30 days and now sit at the highest levels seen since February.  Trading £200,000 into Australian Dollars now in comparisons to 6 weeks ago currently gets you move than $40,000 more. To take full advantage of this opportunity please get in contact now – email me Steve Eakins – hse@currencies.co.uk

GBPAUD – has it reached its peak?

Moving forward I don’t expect these better levels to last.  News from the UK referendum will probably weaken the pound and the forecasts on the US dollar I think it’s little weak meaning the AUD will probably return to favour.

The UK Referendum is now less than a month away and current polls suggest it will be an easy win for the ‘Remain’ campaign which has helped push up the value of the Pound making buying any currency with Sterling cheaper to do.  As we get closer to the event I don’t think that Sterling will remain as strong. Like we saw in the build up to elections in the past and the Scottish referendum, the uncertainty returns in the last two weeks weakening that currency. So it seems highly likely that we will see Sterling’s rate and therefore the cost of buying the Australian Dollar to rise in the coming weeks.

GBPAUD forecast this week

In the near future we have the latest GDP figures from the UK on Thursday – again this is more likely to weaken the pound rather than strengthen it.  It seems very probable that the uncertainty seen and discussed this year around the future for the UK would have slowed down domestic economic activity which could be seen in this release.

As a result if you are looking at buying GBPAUD this week I would suggest moving today or tomorrow.

US interest rate decision impacting the Australian Dollar’s value

The US speculation on interest rate change could also impact the value of the Australian Dollar.  The market is still very much unsure about when the next hike will come, potentially June or September.  As the world’s largest economy this will have a ripple impact on a majority of currencies, those who trade in the dollar, peg their currency to the dollar, commodity currencies as these commodities are normally priced in USD or indeed those with a large debt to GDP figure as these financial facilities are normally coming from the US.

As the AUD is widely used in carry trades the decision make in the FED will have an impact on the risk appetite of traders and therefore in the demand for the Australian Dollar and therefore its value. It is certainty a story which will have a long impact on currency markets globally and certainly will impact the value of the AUD.

To learn more about the above, the forecasts for the AUD and indeed to get a live price for comparisons purposes please feel free to get in contact. Email myself, Steve Eakins, directly at hse@currencies.co.uk for a personal response.

What will affect GBP/AUD this week? (Daniel Johnson)

There is little data coming out of consequence form Australia this week, so focus will be UK data releases. Today at 09.30 we will see UK public sector net borrowing. I would expect to see an increase and Sterling to fall in value. Thursday at 09.30 we have UK GDP figures which is a key barometer as to the health of an economy. I think businesses are holding back on making larger deals at present due to the uncertainty surrounding the EU referendum and due to this we will again see a decline in the figures which will in turn weaken the pound. Early Friday at 00.05 we have UK GFK consumer confidence, apologies for my pessimism but again I think there will be a decline.

Despite my views on these data releases I feel they will not be the key factors in buoyancy levels for GBP/AUD. It is important to note that the Reserve Bank of Australia have indicated their intention to weaken AUD in order to make exports seem more appealing. Although a rate drop on 7th June maybe slightly premature I believe another rate drop will be on the cards. The EU referendum is dictating the strength of the pound at present, current polls suggest the remain camp slightly in front which is why we have seen Sterling rally of late.

I would be happy to assist with your currency needs. I work for one of the top brokerages in the country and by doing so I am in a position to beat any competitors rate of exchange. I am also willing to provide a free trading strategy to try and maximise your return. Simply let me know the currency you are trading, time scale and a ball park figure of the trade. Feel free to get in touch at dcj@currencies.co.uk.

 

GBP/AUD Rates Flatten Out Following Spike (Matthew Vassallo)

GBP/AUD rates have levelled out during Monday’s trading following last week’s Sterling strength. With a move through 2 last week it seemed as though the Pound may gather further momentum but the AUD has found support today, with the pair now moving back towards 2 by close of European trading.

The reason for last week’s GBP spike can be attributed to a couple of different factors but it was the most recent poll regarding next month’s EU referendum, that seemed to act as the catalyst. The poll indicated that we are now more likely to remain part of the EU and this immediately brought some market confidence back to the Pound. When you consider the general downturn in the Australian economy, it is no real surprise to see GBP/AUD drop but the key question now is whether this trend will continue to push Sterling’s value up, or is the upcoming referendum and in consistent UK data going to halt the Pound’s rise?

Personally I think the Pound would struggle to remain above 2 purely based on the current economic climate inside the UK but it is the problems in Australia which seem to be dragging the AUD’s value down. If this continues then we may find rates move settle between 2.05-2.10 over the coming days, assuming we hear no further reports that an Out vote is gaining support in the build-up to next month’s vote.

Personally I feel there is too much uncertainty in the market to gamble on any major Sterling improvement and with the markets moving simply off media reports than hard data, I would be tempted to secure any GBP/AUD position ahead of next months referendum.

If you have an upcoming GBP or AUD 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 on 0044 1494 787 478 and ask one of my team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk

RBA governor to set the tone for the Australian Dollar vs Sterling (Tom Holian)

Sterling vs Australian Dollar exchange rates have remained above 2 apart from a small blip overnight.

The Reserve Bank of Australia governor Glenn Stevens will take centre stage when he addresses the markets about the recent policy decision made by the central bank.

The RBA cut interest rates earlier this month from 2% to 1.75% in an attempt to kick start the Australian economy which has seen signs of a slowdown recently.

The Chinese economy which is such an important part of the Australian economy has continued its recent slowdown and with commodity prices still relatively low this is causing problems for the economy down-under.

I think Glenn Stevens’ tone will be relatively dovish and he could even hint that the RBA may look to cut interest rates again in the future and this could see GBPAUD rates go in an upwards direction overnight.

The sticking point behind whether or not Sterling may strengthen further will come on Thursday when UK GDP figures are set for the release.

This is the second revision for the first quarter with the estimate at 0.4%. Anything different is likely to cause some volatility for Sterling 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