Sterling vs Australian Dollar Rates (Tom Holian)

Sterling vs Australian Dollar improved by over 2 cents on Friday as Bank of England governor Mark Carney suggested that the next move for UK interest rates could be a rise.

This saw the best exchange rate for buying Australian Dollars in the last couple of weeks after the recent falls for the Pound.

On Wednesday the Reserve Bank of Australia published its Financial Stability Review which suggested that even though the property market down under has reached record levels the RBA is still open to cutting interest rates to spur the economy and make its exports more competitive.

Next week the UK publishes GDP data with expectations for 2.7%. With UK retail sales last week showing year on year of 5.7% I think the GDP on Tuesday could be very good for the UK providing excellent opportunities to buy Australian Dollars.

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 Exchange Rates – When to BUY AUD? ( Andrew Bromley )

The GBP AUD pair has moved very much in favour of GBP holders today, as this morning Mark Carney of the Bank of England was very ‘bullish’ (positive). Carney was speaking on monetary policy in Frankfurt and indicated that the next interest rate for the UK would be positive. This provided Sterling the unexpected boost seen and pushed rates back in to the early 1.90s

The short to medium term outlook for GBP AUD is a very tricky one to call, as both sides of the currency pair have big announcements.

The Australian Interest Rate decision has previously enabled AUD buyers to achieve rates in excess of 2.0, and I personally feel that there will be another cut before the end of quarter 2. This would see AUD weaken substantially and depending on the strength of the Pound – could enable the 2.0 mark again.

The Sterling side has the impending UK General Election and yesterday evening proceedings kicked off. Cameron vs Miliband was watched all across the UK with analysts having Miliband a hairs breadth ahead of Cameron. The Election build up will spell substantial GBP volatility as realistically there will be a hung parliament.

If you are buying AUD, I’d be inclined to BUY sooner rather than later. The Election in the UK is a much more guaranteed outcome of currency impact so not worth risking!

Please feel free to get in touch should you have an exchange requirement on either 01494 787 478 or email AJB@currencies.co.uk

Have a good weekend – will the Aussies win the Cricket in their own backyard???

 

US GDP to impact on Sterling vs Australian Dollar Exchange Rates (Tom Holian)

Sterling Australian Dollar exchange rates have recently fallen as confidence in the Pound has dropped in recent weeks.

The Bank of England governor Mark Carney said last week that he’s worried about the value of the Pound as it has been so strong recently so we have seen Sterling fall across the board during the week.

Even with UK Retail Sales which were published this morning this did little to support Sterling.

The figures came out at 5.7% compared to 4.7% for year on year and 0.7% month on month compared to the expected 0.4%.

Tomorrow the US releases GDP and as the world’s largest economy anything that happens in America tends to have an impact on exchange rates across the globe. Therefore we expect a large amount of volatility during tomorrow afternoon’s trading session.

UK GDP data is due next Tuesday and this will likely give us big clues as to how GBPAUD rates will move during April.

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

 

 

Are GBP/AUD Rates Heading Back Towards 2 (Matthew Vassallo)

GBP/AUD rates have dropped off over the past week, with the pair dipping below 1.90 at the low. With UK economic data not as strong recently, it is not surprising to see the AUD realign itself slightly. UK Factory orders have fallen to a 2 year low, proof that our exports are being hurt the Pound’s rising value and despite better than expected Retail Sales figures released this morning, the Pound seems to have lost its recent momentum.

Despite this dip for the Pound I do not expect this trend to continue in the long-term. The Reserve Bank of Australia (RBA) seem as committed as ever to lowering the AUD’s value, in order to help boost their exports and with mixed data coming out of China recently (Australia’s largest trading partner), the AUD could struggle to make any sustained inroads against GBP under 1.90.

With little data of note out for either the UK or Australia for the rest of the trading week, I do not anticipate any major moves from the current levels. I do feel it is more likely we will see Sterling creep back up, than see the AUD start to move towards 1.85.

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

Australian Dollar Strong! But… For How Long? ( Andrew Bromley )

The move in to the 1.89s this week has been quite a shock to the markets, as at times within the last 8 weeks we’ve seen 2.0 and above! The substantial shift in rates has been due primarily to two things;

Pound Weakness – The data on factory orders released Monday shows a concerning level of UK exports. This is primarily due to the crashing Euro affecting the UKs key trading partner the Eurozone, meaning our exports are too expensive. This is tied in with yet more poor inflation figures giving a pretty dire outlook for the Pound. I wouldn’t be surprised if Mark Carney (Governor of the Bank of England) ‘talked down’ the Pound, in an effort to re-stimulate the economy. Lastly and by no means least, the UK is approaching an incredibly open UK General Election. Political instability is bad news for a currency, so the Pound will suffer.

Australian Dollar Strength – The AUD and USD are linked very closely, as when the US Dollar is weakening (as seen from Friday), investors chase better returns in currencies like the Aussie Dollar. However, I don’t think it will be too long until that flow of money is reversed, subsequently re-weakening the AUD. Continued strength for the AUD (much like the Pound) would not be welcomed by the Reserve Bank of Australia. There’s every chance that another Interest Rate cut could happen over the following months to halt the AUD progress.

If you have an exchange requirement, please feel free to drop me an email on AJB@currencies.co.uk . There is also a direct line to the trading floor – 01494 787 478 – please ask for Andrew Bromley and mention this blog!

Have a good evening and enjoy the Cricket!

Andrew Bromley

GBPAUD rates back under 1.90

GBPAUD rates have continued the trend we have seen well established over the last fortnight as the UK Pound falls in value. Rates currently are giving AUD holders a great opportunity to get better prices but there are strong arguments suggesting rates could improve further, bad news for anyone with AUD to buy.  This being the continual uncertainty that is establishing itself as a result of the coming UK election in less than 50 days time. It is widely expected to be the most challenging election in a generation with multiple parties in the running, a almost certain collision needing to be formed with a wide stretching contrast in economic policy put forward but each party and the potential for a vote on maybe leaving the EU. All this is having a negative impact on both the pound due to the uncertainty of traders but also on the economy as business hold back orders.

This generally has a larger impact closer to the events so a period of Sterling losses is widely expected. Rates however do not move in a straight line so timing a transfer will be key which is what our service here is all about, so if you would like some assistance and information on the potential events that could impact your worth feel free to contact myself Steve Eakins via hse@currencies.co.uk

Australian Dollar Strengthens! Best rates to sell the Aussie since January! Will this continue?

The Australian dollar has reached some of the best levels against sterling since January. The big question is will this continue? I think it is reasonable to say that longer term the AUD will weaken against the pound since the Australian central bank (RBA) have stated an intention to cut interest rates in the future. Looking at the market rates for the last few years we can see the rate has considerably deteriorated for those selling AUD to buy pounds, this is likely to continue further.

If you need to sell AUD for sterling making some plans in advance is often a good idea to limit your exposure to the market. If you have any questions on the market or wish to discuss all of your options please contact me Jonathan on jmw@currencies.co.uk

Sterling Australian Dollar Exchange Rates and the impact of UK Inflation (Tom Holian)

Sterling Australian Dollar exchange rates have dropped to their lowest level in 2 months as the UK economy is ready to announce inflation data this morning.

The Pound has struggled against all the major currencies over the last few days as it has almost become a victim of its own success.

With Sterling riding so high since the turn of the year this is slowly beginning to affect British exports.

Indeed, UK factory orders published yesterday showed a fall to their lowest figure in 2 years.

Factory output is also being reported at the same levels as 2008 which is a concern for the British economy.

The target for UK inflation is 2% and we are clearly way off that at the moment and with oil prices falling globally I expect to see a fall in inflation today which could see Sterling weakness providing excellent opportunities to sell Australian Dollars into Sterling.

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

 

 

Where next for Sterling vs Australian Dollar exchange rates? (Tom Holian)

Sterling Australian Dollar exchange rates have had a very mixed month already with the high to low of almost 8 cents which highlights the importance of timing your currency transfer.

The RBA kept interest rates on hold earlier this month as they are still concerned over a rise in the property market in Sydney and an interest rate cut could result in higher property prices in the city which could ultimately lead to a bubble and burst effect.

However, it is more than likely that over the next quarter the RBA will cut interest rates in order to stay competitive.

RBA governor Glenn Stevens has already stated that the Australian Dollar is too strong so to me it is a matter of time before we start to see Sterling rise towards 2 against the AUD.

However, in the short term the focus will be on what happens with Sterling with two major data releases this week.

Beginning on Tuesday UK inflation data is published with the expectation for 1.3%. Anything lower could see see a fall for the Pound.

On Thursday the UK releases Retail Sales which have been good for the past few months so I expect to see Sterling gaining later in the week against 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

 

 

 

 

What next for the Australian dollar?

GBPAUD looks very likely to come in with some surprises this year as uncertainty prevails on the rate. Longer term we are expecting further interest rate cuts which will cause the pound to spike higher against a weaker AUD. The Aussie economy has improved from the worst case but announcements overnight that the RBA will consider infrastructure investments are the kind of thing that will help the AUD.

For now just beware the rate will likely fall to say 1.85 before rising to 2 later in the year! Don’t believe me? Why not email me your thoughts on jmw@currencies.co.uk and we can discuss the market.