Monthly Archives: March 2018

Australian Dollar on the ropes vs the Pound during March. – is there further weakness ahead in April? (Tom Holian)

The Pound has had one of its best months in recent times against the Australian Dollar hitting the best rate to buy Australian Dollars with Pounds since June 2016 when the EU referendum was announced.

The Australian Dollar has been struggling with an imbalance between the western part of the country where the mining industry appears to be slowing down whilst the east coast cities seem to be performing better.

The issue for the Reserve Bank of Australia is how they will be able to manage monetary policy going forward. The RBA is due to meet next Tuesday and I think the tone will be very dovish and any talk of a rate hike will be a long time coming.

Inflation has been struggling and the economy is showing signs of a slowdown in Australia and this is another reason for the weakness of the Australian Dollar with GBPAUD rates hitting 1.85 earlier on this week.

America now has a higher interest rate than Australia and this has meant global investors has begun to bypass the previously attractive yield available down under in favour of placing money in the US.

The trade wars between the US and China have caused big problems for the Aussie Dollar and I think there could be worse to come with this particular topic as Trump has already been rather vocal about putting America first.

Meanwhile the economic data from the UK has been improving and only recently the Bank of England announced a 7-2 vote in favour of keeping interest rates on hold which suggests a rate hike may be coming fairly soon with odds relatively high of a rate hike coming in May.

On Wednesday Australia announces the latest Retail Sales data and I think this could come out lower than expected putting further pressure on the Australian Dollar vs the Pound.

Therefore, if you’re in the process of buying Australian Dollars it may be worth holding on until later on next week.

However, if you’re selling Australian Dollars it may be worth organising this very soon.

If you would like further information about how to save money on exchange rates or you would like a free quote then email me directly with your requirements and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Australian Dollar exchange rates look ahead to RBA interest rate for next stages of movement

Australian Dollar exchange rates have weakened against a basket of major currencies this week so far and depending on just what we hear back from the RBA during their interest rate decision and monetary policy statement next week. Expectations are for no change to interest rates either at this particular decision or for the coming months but what will be key for the Australian Dollar will be the comments in the monetary policy statement afterwards, and the tone taken by the RBA.

Recent comments from the RBA have suggested that they are not happy with Australian economic data at present and that this will hold them back from looking to raise rates in the near future. This is slowly dropping Australia behind, investors are pulling their money out of the Australian Dollar to seek higher returns elsewhere, for example moving money into U.S Dollars where the interest rate is now higher and the currency is perceived as a safer option.

One of the key issues for the RBA at present is the fact that average earnings/wage growth is not picking up at the pace they would like it to. This causes an issue as if the general consumer’s earnings are not moving up in line with inflation, then essentially people are going to have less money in their pocket to spend which leads to the economy weakening slightly.

This issue has been quite common around the globe, however many other regions are now starting to find that their average earnings figures are rising which is giving them more room to raise interest rates which is why the Australian Dollar is starting to suffer as a result.

My personal view has been that we will have a weak year for the Australian Dollar this year, and I have been saying that for a number of months now. It does appear at present that these predictions are starting to come true.

If you have a currency exchange to carry out in the coming days, weeks or months ahead and you would like my assistance both with the timing of your transfer and getting the best rate when you come to book it out, then do feel free to get in touch with me (Daniel Wright) directly on djw@currencies.co.uk and I will be happy to speak with you personally about your own situation and how to approach it. We specialise in currency for international property purchases/sales or clients who are emigrating or moving home. I look forward to speaking with you.

Pound continues to make gains vs the Australian Dollar (Tom Holian)

I have been predicting in my last few articles that the Pound would break through 1.80 during the course of this month and continue to rise against the Australian Dollar which has shown signs of a real struggle during March.

We are now at the highest level to buy Australian Dollars with Pounds since the the referendum during June 2016 which saw the Pound collapse against the Australian Dollar after the British public voted to leave the European Union.

Although the Pound has been supported by better news on the Brexit front including an agreement on the transitional deal it appears to me is that it is more likely to be overall weakness for the Australian Dollar which has seen GBPAUD exchange rates move to these recent highs creating some excellent opportunities to buy Australian Dollars with Pounds.

There are a number of reasons why the AUD has weakened but mainly due to what is happening in the US during the course of this month. At the moment the Trump administration has put in place a number of different tariffs on Chinese goods coming into the US and as China is Australia’s largest trading partner any problems will often result in Australian Dollar weakness. If the trade wars ramp up this could cause further problems for the Australian Dollar so if your’e considering buying Pounds it may be worth organising this in the near future.

The stock market down under has also fallen since the start of the week as the US is also proposing a crackdown in Chinese investment in tech firms in the US.

With the Reserve Bank of Australia due to meet early next week I think the tone will suggest that any interest rate hikes may be a long time coming so this could provide a further boost for GBPAUD exchange rates.

Having worked in the foreign exchange industry since 2003 with my experience I am confident of being able to offer you both bank beating exchange rates and also help you with the timing of your transfer of currency.

If you would like further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

AUD Forecast – Concerns Over Global Trade Continue to Weigh Heavily on the AUD (Matthew Vassallo)

The AUD has lost some ground against Sterling overnight, with the pair trading 1.85 during Wednesday morning’s trading.

The AUD has come under pressure lately, having found plenty of support around and below 1.80 for long periods.

The Pound itself has had a very positive week following a strong run of UK economic data. Investor confidence in the Pound soared as UK Unemployment figures fell, Retail Sales figures exceeded expectation and there was even a nod from the Bank of England (BoE) that they may look to hike interest rates over the coming months.

This positive feeling was cemented as reports regarding a Brexit transitional deal surfaced. These reports were later confirmed, with the UK & EUR all but agreeing the terms of the deal, which included access for the UK to the single market & customs union during the two year period.

This positive sentiment helped support Sterling’s rise against the AUD, which itself has come under increasing pressure of late in line with a slowdown in global growth.

Investors have been pulling their funds away from riskier assets such as the AUD, with fears that President Donald Trump’s imposed tariffs on imported goods good have a serious knock on effect for the global economy. As regular readers will know the Australia relies heavily on sustainable global growth to boost its export driven economy and any slowdown inevitably has a negative knock on effects for the AUD.

With US/China trade wars also impacting investors risk appetite, particularly as China demand for Australian goods & materials is so essential to the Australian economy, the AUD may struggle to make any sustained impact back to or below 1.80 against Sterling in the short-term.

Whilst Brexit fears have not completely subsided, with many questions regarding future trade relationship’s still to be answered, I would be tempted to protect any AUD currency positions and avoid the risk of further downturns.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

How high could GBPAUD rates go?

The pound to Australian dollar exchange rates has been touching fresh highs as the pound rises and the Australian dollar weakens. A key factor in this trend has been the shift on the US dollar and the UK with interest rate hikes since both the UK and US are looking to raise interest rates whilst the Australian dollar has been weaker because there are no hikes planned.

This trend seems likely to continue in the weeks ahead as we learn more around the Bank of England who appear very keen to hike interest rates in the future. This will be data dependent but the path ahead is looking clearer which will only help the pound further in the future. The same too is definitely true of the US dollar and the US Federal Reserve who are likely to raise rates up to three more times this year.

As the US interest rate is higher now than the Australian interest rate it makes less sense to hold Australian dollars than US dollars. This has seen a big shift in USDAUD exchange rates which is weighing the Aussie dollar down against the pound and presenting much better opportunities to buy AUD with sterling.

The next really key news is this Thursday with the latest UK GDP (Gross Domestic Product) data which could influence GBPAUD rates. I don’t think this will be a majorly important release but next week could see increased volatility with the latest Australian interest rate decision and important US Non-Farm Payroll data released.

I would not be surprised to GBPAUD pushing higher and we could easily hit 1.90 or the high and mid 1.80’s in April. If you are selling Australian dollars to buy pounds moving sooner than later seems the best bet. Otherwise targetting a more beneficial rate on any spikes might prove a profitable and worthy approach.

If you have any transfer buying or selling Australian dollars then understanding the latest news and trends can help you to maximise your rate by trading at the right time. For more information please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I hope like our website and information.

 

Has GBP AUD Peaked? – Sterling Begins to Fall (James Lovick)

The pound continues to maintain the higher ground against the Australian dollar whilst sterling is falling this morning against most of the other major currencies. Rates for GBP AUD are currently sitting just below 1.84 for the pair but the positive rally appears now to be coming to an end. At present there is an excellent opportunity to buy Australian dollars with pounds and clients may wish to consider securing sooner rather than later to avoid potential disappointment. Sterling Is beginning to fall sharply against most of the other major currencies in a sign of what may now be about to happen against the Australian dollar.

The pound has been given an excellent boost over the last week after Britain and the EU were able to agree on a transitional deal which keeps Britain abiding by EU rules for another 18 months to avoid the so called cliff edge Brexit. This is important for sterling exchange rates as the agreement gives business some certainty which the markets have been screaming out for. This latest Brexit agreement combined with the trade policy adjustments coming out of the Trump administration have helped see the GBP AUD pair soar.

Donald Trump has made two recent interventions where tariffs on Chinese exports have been introduced. The first was the imposition of tariffs on both steel and aluminium and more recently he introduced tariffs on some imported goods. This has wider implications and the Australian dollar is likely to see market volatility on the back of any further policy changes coming from the US.

These changes have wider implications and the Australian dollar is one currency that is disproportionately impacted. The prospect of a trade war has implications for the Aussie especially considering the size of Australia’s export market to China and the fact that China at present is being heavily targeted by the US with these trade barriers.

For more information on Australian dollar exchanges rates and how to try and make the most of any opportunities in the markets then please get in touch with me at jll@currencies.co.uk

Get the most out of your Australian Dollar exchange rate – How we can help

With very little in terms of economic data out to impact Australian Dollar exchange rates this week I thought I would remind our regular readers that not only can we offer up to date and informative market information but all the writers on this site also work for a currency brokerage too.

We can offer all of our readers market leading exchange rates along with extremely high levels of customer service. If you are currently having to trawl through the internet to find out what the latest info is on the Australian Dollar then in my opinion your current choice of currency broker is not doing what they should be, as they should be available for you to let you know not only what has happened but their view on up and coming market data too.

That is exactly how we can help you and if you would prefer a more personalised service then it is well worth getting in touch.

You can fill in the enquiry form on the right hand side of this page or you can email me (Daniel Wright) directly on djw@currencies.co.uk with a brief description of your currency requirements and I will be more than happy to get in touch personally.

Many people these days are also pushed onto online trading platforms which are convenient but unfortunately convenience does quite often tend to cost more, so if your broker has also got you using their online system then you only have a robot giving you a price instead of a human actively working on the price for you, therefore more often than not the online platform is much more expensive. When transferring larger sums of money it is absolutely key to maximise your rate as the difference can be hundreds if not thousands of Dollars so be sure to check out your price and email me for a free, no obligation quote to check you are still getting a good level. I am happy to carry out a quick currency audit for you.

You can get in touch with me on djw@currencies.co.uk or by filling in the form on the right hand side of this page. I look forward to assisting you should you need me.

 

 

Could we see further increases in the value of the Pound vs the Australian Dollar? (Tom Holian)

The Pound has maintained its positive run recently against the Australian Dollar hitting levels of 1.83 on the mid-market creating the best rate to buy Australian Dollars with Pounds since the EU referendum back in June 2016.

The US have again raised interest rates are now they have surpassed the rate in Australia which has caused global investors to sell the Australian Dollar and move funds into the US.

The American economy has been going from strength to strength recently and with the Federal Reserve likely to continue on their path of raising interest rates this year I think we could see further weakening of the Australian Dollar.

The Reserve Bank of Australia are unlikely to be raising interest rates in the near future as the Australian economy is showing signs of a slowdown and with the trade wars between the US and China this could cause further problems for the Aussie Dollar.

The reasoning is that as China is such a major trading partner with Australia any problems with the economy in China can often have a negative effect on the value of the Australian Dollar.

The ongoing trade wars between the US and China have also destabilised the currency markets and this has again caused global investors to move money away from riskier commodity based currencies such as the Australian Dollar.

I think we could see further weakness ahead for the Australian Dollar. We have already seen the Pound remain above 1.80 for a sustained period of time and if the tone of Brexit remains positive I think we could see a strong end to this month for the Pound vs the Australian Dollar.

Having worked for one of the UK’s longest established currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your currency transfer when exchanging Australian Dollars

For a free quote please send me an email directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Buying Australian Dollars with Pounds? (James Lovick)

Those clients looking to buy Australian dollars have seen a great spike this week for the GBP AUD pair. Rates for GBP AUD have broken over 1.83 although the recent rally appears to be running out of steam. The pound has been given an excellent boost after agreement was reached between Britain and the EU on a transitional deal in the Brexit negotiations. The pound has benefitted from this as a degree of confidence for British business has been restored and this is seen as welcome news for the British economy.

Clients looking to buy Australian dollars would be wise to consider taking advantage of the current highs as spikes likes these in recent months have so far proved very short lived. There are a number of thorny issues which will resurface in the coming weeks and revolve around the Irish border and financial services.

If no agreement is reached over the Irish border and if a deal cannot be found which includes financial services for the city of London then the prospect of a no deal scenario suddenly starts to look considerably more likely. It is for this reason that any gains beyond these levels seem unlikely in the short term at least.

Clients looking to sell Australian dollars should see some spikes in the coming weeks and months although my view is that a deal on Brexit will be reached and this could see the pound perform very well. A move towards 1.90 for GBP AUD cannot be ruled out in these markets especially as the Brexit appears to have finally turned a corner with an apparent accord and will to move forward from all sides.

For more information on Australian dollar exchange rates and how to make the most of these opportunities in this volatile period then please get in touch with me at jll@currencies.co.uk

Will GBPAUD remain above 1.80?

The pound to Australian dollar rate is looking like it might rise further in the future so for clients looking to sell AUD for pounds a quick move is probably sensible. With the levels now safely above 1.80 fr over a week the prospect for it to dip back below 1.80 seems unlikely. Overall the expectation for clients who will need to buy pounds with Aussies is that moving sooner will probably be best.

We learned this week that the pound should find more favour against the Australian dollar on the back of improved expectations relating to the prospect of interest rate rises. The GBPAUD rate was dealt a double whammy when the US raised interest rates but also confirmed extra buoyancy in future hikes which has kept the AUD weaker against both currencies.

We learned very recently that the RBA (Reserve Bank of Australia) will be looking less likely to raise interest rates in the future, this has seen the Australian currency weaker. Interest rates are a major barometer of what will happen to a currency in the future, the expectations that the US Federal Reserve and the Bank of England will raise interest rates ahead of the RBA is putting the Aussie on the back foot.

The next stages of progress will be made in the coming weeks, any surprise twists and turns on Brexit could unsettle the pound GBPAUD rate but the overall impression looks more positive. If you have a transfer buying or selling pounds and Australian dollars making plans ahead of any spike is the best course of action.

If you have a transfer and wish for some expert information and assistance on the currency markets, please don’t hesitate to get in touch with me directly on jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing back from you.