Rollercoaster on buying Australian Dollar rates today raises questions as to what the real trend is? (Joshua Privett)

Buying Australian Dollar rates of exchange showed both dramatic downswings and upswings today, leaving most with a GBP/AUD requirement wondering if this is a signal that the downtrend has abated for now?

To answer that question we have to look to what has actually happened today and while it may seem strange we first need to look to events in the USA.

Whether you watched the debate last night, or caught some of the frankly comic highlight reels of the exchanges between Trump and Clinton online, some of the exit polls released show that a slightly more reserved Trump is playing well with the electorate. Even the BBC polls have it as only a 2 point lead for Clinton.

So to sum up the real result from the debates is the realisation to markets on a global scale that we are in for a ‘close race’. Most of the chatter seen on our screens at the office today was centred arrowed the narrowed odds and uncertain expectations for how the election will unfold.

Similar to the General Election in the UK last year in which the polls were close in the run up to the event, though obviously proved spectacularly wrong later, was enough to label the Pound as risky due to the uncertainty of the UK’s economic future. This same temperment is now attached to the Dollar, with concerning consequences for Australian Dollar buyers.

From a currency perspective, traditionally riskier commodity based currencies such as the AUD, CAD, NZD suddenly do not appear as risky a prospect by comparison for investors eager to enjoy interest rates 3 times higher than that of the US on their capital.

The significant capital outflow this morning the Australian Dollar was the overwhelming reason why its value cannonned upwards against its counterparts, including the Pound through increased demand. 

The only saving grace for AUD buyers was that at midday a further slide in commodity prices following a poor result at the most recent OPEC meeting allowed the Pound to recover for a minor gain today.

However, this news today about the US election shall continue to be a prevalent factor on the currency markets, and will continue in earnest in October with less than a month then until the election. If you have an AUD buying requirement, with this recent curveball through into the mix, it may be best to look at moving sooner rather than later unless you have a strong reason to expect Clinton to gain a signficant lead in a short period.

That being said, this commodity price news still has not hit whilst Asian markets are open, so this rally could continue in the short-term. As such a premium will be put on the next 48 hours or so to be in a position to move quickly should any tempting opportunites emerge to buy to ensure you are not ‘last to the party’.

If you have an Australian Dollar buying requirement I strongly recommend getting in contact with me overnight or tomorrow morning whilst markets are relatively quieter on jjp@currencies.co.uk to discuss the options open to you to maximise your currency return from the upcoming movements, and most importantly to safeguard your purchase from any adverse movements down the line.

Australian Dollar sellers can also get in contact to discuss how best to enjoy any peaks which may emerge during the beginning of October – but I appreciate that some may not be in a position to wait for that period of time.

You can also fill out the form below, and I will be in contact as soon as I am able to.

 

A quiet week for economic data however Australian Dollar exchange rates will no doubt remain volatile (Daniel Wright)

So this week we have very little out in terms of economic data for the market to feed off of, however do not let that fool you into thinking that we are going to have a flat market over the course of the week.

Last night we saw the U.S debates between Trump and Clinton and it appears that =Clinton came out on top which led to a little strength for the Australian Dollar due to riskier currencies coming back into fashion.

One of the key things to look out for, on top of commodity prices and general risk appetite is what we see happen in the U.S elections. Should Clinton remain out in the clear then we may see further Australian Dollar strength however you must be aware that if we do suddenly start to see Trump charge ahead then perceived ‘riskier’ currencies such as the Australian Dollar will be likely to weaken… As investors and speculators will be fairly likely to panic if Trump does start to look like he may win.

We have U.K growth figures out on Friday morning which will be the main driver for GBP/AUD exchange rates towards the end of this week but asides from that the key focus will be changes in commodity prices, news from China, U.S election and general risk appetite.

If you are looking to buy or sell Australian Dollars and you would like to achieve the very best rate of exchange for your transfers then it is well worth getting in contact with us directly. We can generally better any other brokerage out there and we like to think our customer service is much better too. Feel free to get in contact with me (Daniel Wright) by emailing me directly on djw@currencies.co.uk with a brief overview of what you need to do and I will be more than happy to contact you personally to discuss the options available to you.

Brexit worries and risk adverse attitudes keep GBP/AUD below 1.70, will the Pound continue to decline? (Joseph Wright)

The Pound to Australian Dollar exchange rate has remained below the 1.70 mark once again today, as Brexit concerns continue to weigh on the Pounds value.

Markets have been quiet today anyway as many wait in anticipation for this evenings first US Presidential debate which is bound to be a talking point tomorrow and I wouldn’t rule out it’s effects within foreign exchange markets.

As markets await this evening there has been a lack of risk appetite and risk taking within markets as daily trading ranges are thin, and commodity currencies such as the Aussie Dollar have weakened off slightly.

Today’s slight weakening of the Aussie Dollar is in contrast with last week, as the Aussie Dollar quietly gained throughout the week and ended up being one of the weeks best performers. Attention was off the currency last week as a number of other major economies were under the spotlight as the US Fed, Bank of Japan and RBNZ all made interest rate decisions, and whilst this was going on AUD quietly outperformed which is why we are looking at a mid-market level below 1.70.

There is a lot of downward pressure on the Pound at the moment as negative sentiment surrounds the UK economy.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

What to expect for Australian dollar buyer and sellers this week? (Dayle Littlejohn)

New Governor of the Reserve Bank of Australia Philip Lowe, made numerous press conferences last week and in particular addressed interest rates and the housing problem throughout Australia.

As for interest rates the Governor stated the RBA would make further cuts in the future to keep consumers spending if he had to however at the moment he wants to try alternative methods. Throughout the same press conference the Governor stated the over inflated housing market is a serious problem and for Australia people house prices need to stop rising.

The problem is, if the Governor decides to cut interest rates in the future this will entice spending and the volume of people applying for mortgages. If houses continue to sell, especially in the major cities there’s a goof chance house prices will continue to rise.

On a positive note the Governor did take a bullish outlook in regards to Australian exports. He felt that the mining industry commodities had bottomed out therefore commodity prices could only go in one direction.

Its a quiet week for Australian economic data releases therefore I feel exchange rates will be impacted by events elsewhere.

If you are buying or selling Australian Dollars this week, month or year I would recommend emailing me with the currency pair (AUDUSD, AUDGBP, AUDEUR) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

Buying Australian Dollar rates undercut once more from Friday speculation (Joshua Privett)

GBP/AUD rates of exchange suffered heavily on Friday afternoon, with the day’s anticipated speculation habits hurting not just Australian Dollar buyers, but anyone hoping to buy property or move capital abroad holding Sterling.

Each Friday, as my articles on this website have extensively covered since the Leave vote, profit-taking serious undermines the value of the Pound.

High street traders must choose a stable currency to allocate their profits from the week into whilst they are away from their desks. With the uncertainty and question marks over the direction of the UK economy, the Pound is understandly near the bottom of this list. The mass sell-off which ensues on Friday’s like clockwork sees the foundations of the Pound steadily chipped away.

However, the slide for Australian Dollar buyers was more exaggerated than others for one key reason – the change in leadership of the Reserve Bank of Australia.

Philip Lowe has taken over from Glenn Stevens who had been at the helm of the Australian economy since 2012. With Lowe being his second in command for most of this time, it was expected that his trigger happy attitude to monetary stimulus and easing would be continued – particularly with Australia still suffering with low inflation and an abnormally strong AUD.

However, he has surprisingly changed his tune. His initial speeches have immediately dismissed the potential for another interest rate cut in the short term and instead pointed out strong forecasts for the Australian economy to improve its inflation levels without intervention.

Whilst longer term expectations are that he is still expected to act, Australian Dollar buyers in the short-term have already felt and may continue to feel the sting of the new face of Australian financial policy, who seems bent on making a mark early.

He will be speaking first thing tomorrow morning in Australia, but he will find it hard to shock markets further. Instead I am expecting a short-term improvement on buying Australian Dollar rates given that Mondays see some reversal on Friday’s trading patterns with the sold-off Pounds readily soaked up.

Given the heavily exaggerated sensitivity of the markets in the post-Brexit vote landscape, a premium is set on being able to move quickly should any tempting opportunities emerge.

There are a number of options open to Australian Dollar buyers to make sure you are not ‘last to the party’ in these situations. I recommend that if you have a short to medium term requirement on GBP/AUD you should contact me on jjp@currencies.co.uk whilst markets are closed over the weekend to discuss a how best to maximise your currency return.

As a point of not I have never had an issue beating the rates of exchange offered elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency requirement later in the year.

Australian Dollar sellers can also get in contact if you are planning a move back to the UK later in the year.

You can also fill out the form below, and I will be in contact as soon as I am able.

The impact of Article 50 on buying Australian Dollars with Sterling (Tom Holian)

We have seen a difficult week for the Pound vs the Australian Dollar as rumours increase that the UK could be getting ready to trigger Article 50 early next year. Last weekend European Council President Donald Tusk said that in a conversation recently with Theresa May that the UK is getting things ready to to start negotiations by February. However, shortly after this his words were retracted and the story didn’t gain any further momentum until late this week.

Our very own Foreign Minister Boris Johnson has said whilst in the US that the UK will begin formal talks ‘early next year’ and leave the European Union by 2019. However, Downing Street has confirmed that it will be Theresa May’s decision alone when to trigger Article 50.

What is for certain is that the lack of clarity is causing weakness for Sterling exchange rates across all major currencies including against the Australian Dollar causing the Pound to hit the lowest level to buy Australian Dollars in weeks.

As we go into next week we could see GBPAUD rates fall even further with the release of the second quarter GDP for the UK on Friday. As this will include the run up to the Brexit we could see some interesting figures and as the first official release of GDP during this time if the data comes out negative this could cause even further woes for the Pound vs the Australian Dollar.

Politically the UK is in a state of limbo and until we get some assurances as to when Article 50 will be triggered this could weigh heavily on the Pound and I would not be surprised to see GBPAUD rates fall even further during the short term.

Having worked in the foreign exchange markets since 2003 as a specialist currency broker helping individuals with their personal currency requirements I am confident that I can also help you not only save money compared to using your bank but also help you with the timing of your transfer.

If you need to make a currency transfer then feel free to contact me outlining your personal requirement and I will reply with more detail. Tom Holian teh@currencies.co.uk

 

 

When will GBPAUD rates recover?

GBPAUD rates have slipped from the highs recently seen to now below 1.70 as predicted here earlier this week. Many clients I spoke to this week questioning when to move on their Australian dollar purchase have thanked me for the help to move sooner. Whilst the rate is flirting with 1.70 we might yet see some further improvements for AUD buyers but a steady decline in the value of the pound seems likely whilst so much political uncertainty clouds the UK. If you have a currency transfer to consider involving the pound and Australian dollar then making some plans sooner rather than later seems to me very sensible in the current market.

The projections on the currency were dealt some light this week with the new appointment of a new Governor at the Reserve Bank of Australia Philip Lowe. He seemed fairly positive in his commentary around the state of the economy suggesting that the falls in mining and commodity industries in the Australian economy may have bottomed out and that the future might not be so bad. He suggested that the split between raising or lowering rates was 50 to 50. This means there could be a fairly choppy move forward on the AUD as investors scramble to make sense of any plans.

If you have a transfer to consider involving buying the pound or Australian dollar then making some plans in such a clearly uncertain market is sensible! I am Chief Analyst and Associate Director at one of the UK’s largest privately owned currency brokerages with close to ten years experience looking after and managing both private clients and business clients foreign exchange transfers. Now is the right time to be looking to make a plan if you have a currency transfer pending, for more information at no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk

Sterling vs the Australian Dollar exchange rates hit their lowest level in 5 weeks (Tom Holian)

Over the last few weeks we have seen Sterling vs the Australian Dollar move by over 5% which on a currency transfer of AUD $200,000 is in excess of £5,600.

The currency movement for GBPAUD rates has mainly been caused by what is happening in the British economy and UK economic data that has been announced during this period.

Since the Brexit vote we have also seen GBPAUD exchange rates move by as much as 30 cents as the uncertainty caused by the UK’s decision to leave the European Union has created a huge level of uncertainty.

The new Reserve Bank of Australia governor Philip Lowe has now replaced Glenn Stevens who was at the helm for 10 years and we could be in for an interesting period ahead for the Australian economy.

Yesterday Philip Lowe spoke about Australian interest rates and the housing bubble in major cities in Australia and has suggested that interest rates may be cut at some point in the future.

The problem that Australia is facing is that the economy itself is in need of an interest rate cut and this has been freely admitted by the central bank but the housing market could continue to spiral upwards as this makes property more affordable as lending costs fall.

However, at the moment the way Sterling vs the Australian Dollar is likely to continue to be affected is by what is happening in the UK.

The Purchasing Manger’s Index releases recently have included Services, Manufacturing and Production data and all have shown mixed signals.

With the UK set to release GDP figures next Friday which covers the second quarter of 2016 this will include the Brexit period and could see huge movement on exchange rates.

Therefore, if you’re concerned about what may happen to exchange rates prior to this release in order to avoid the uncertainty then it may be worth organising your transfer prior to this release.

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.

Having worked in foreign exchange for 13 years I’m confident that not only can I save you money but also help with the timings of your transfer.

Email me directly Tom Holian teh@currencies.co.uk

 

 

Australian Dollar holds at pivotal point of 1.70 (Daniel Wright)

The Australian Dollar has had another fairly solid week against the Pound, and as I write this the GBP/AUD exchange rate remains stable.

We have not had a huge amount of economic data for either Australia or the U.K this week and looking at next weeks economic calender we may have a similar situation next week.

This is where market sentiment and attitude to risk can come into play which can sometimes make the market a little unpredictable. I have helped lots of clients bring back Australian Dollars recently as rates have hit multi year highs.

The Australian Dollar is notably strong as it stands due to a better yield from interest rates which the RBA as struggling to work out how best to play. House prices in Australia are going through the roof which is stopping the ability of the RBA to go too big on cutting interest rates as this will make money cheaper to borrow and merely fuel the fire of the housing price problem.

I personally feel that the issue with Chinese stocks and banks has far from gone away so there is room for Australian Dollar weakness at any time that we need to be aware of.

If you have Australian Dollars to buy or sell then it is well worth having an experienced broker on your side. I have been helping clients for 10 years and the company I work for has been in operation for 17. We have access to extremely competitive exchange rates and pride ourselves on keeping clients fully up to date with market movements. If you would like me to assist you with any pending transfer then feel free to contact me (Daniel Wright) on djw@currencies.co.uk and I will be more than happy to contact you personally.

 

RBA minutes take a dovish tone (Dayle Littlejohn)

Yesterday morning the Reserve Bank of Australia released their latest minutes from the interest rate decision in September. They seemed to suggest future cuts could occur which would therefore devalue the Australian dollar.

The problem is if interest rates are cut this could make the housing bubble in Australia worse as more people will be enticed to purchase property in Australia as interest rates are lower, which means they can get larger mortgages.

In other news the Federal Reserve decided to keep interest rates on hold at 0.5% last night. This has strengthened the commodity currencies as speculators have sold off the US dollar and transferred their assets into higher yielding currencies to make further profit on the interest.

Looking ahead new Governor Philip Lowe will address the public in regards to the state of the economy. I don’t expect major volatility however all of his press conference in the next 3 months are important as it will give direction to how he plans to improve the Australian economy and in particular the housing market.

If you are buying or selling Australian Dollars this week, month or year I would recommend emailing me with the currency pair (AUDUSD, AUDGBP, AUDEUR) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **