Author Archives:
Will GBPAUD test the all time low? Have you made provisions for this market?
The strongest the Australian dollar every reached against the pound was 1.4660 Feb 10th 2012. Unfortunately the nature of exchange rates means that once you lock into a rate it is more than likely that at some point in the near future a better price will be seen. That is the way markets work, catching the top or bottom of any market is almost impossible. You don’t know you have reached the top or bottom until it drops the other way. And by then of course you have missed the peak! GBPAUD is currently testing the all time low of 1.4660 with rates around 1.47-1.48.
Will we break 1.4660? The reasons for AUD strength in recent years remain. The reasons for GBP weakness also remain and therefore it is very likely that we will see GBPAUD drop to 1.45 soon as on balance the pound appears to be weaker currency and to have less going for it. Chinese and Asian data is remaining strong and the UK is looking likely to lose its triple A rating very soon. Next week we have UK GDP data which will confirm whether or not the UK economy contracted in Q4 2012. The revision is expected to confirm last month’s data that does point to a UK in recession.
The pound is continuing to slide and it is looking highly likely it will continue to fall in the future. You can read my own personal assessment on why the pound is so weak on our sister site here. Even if you do not need to exchange today making some small careful preparations ahead of the need to exchange could work very much in your favour.
Should you have an overseas money transfer to consider and would like to find out about getting a better deal (whatever your currency pairings) it is highly likely I can save you money and help with the timing of your exchange. For more information please contact me directly on jmw@currencies.co.uk , I look forward to hearing from you and assisting with your situation.
Incredible time to sell AUD, do not miss out
The Aussie is touching an excellent level against most currencies notably the pound. Poor sterling data has dragged the rate sub 1.50 which is presenting an excellent opportunity for anyone who needs to sell Aussies. If you are selling 100k AUD today to buy sterling you are £3000 better than at the start of the year. Should you be considering a currency exchange involving the Australian dollar and would like more information please email me on jmw@currencies.co.uk
Tomorrow is the Retail Sales figures for the UK which due to the poor weather for January (not even an inch of snow can bring the UK to a standstill!) would I expect be potentially GBP negative. Anyone who is buying Australian Dollars may wish to hold on a little longer for improvements although don’t get too excited. This is not a market to be gambling in and anything above 1.50 should probably be pounced on quickly.
The underlying reasons for GBP weakness and AUD strength remain and there appears to be no immediate change on the horizon. Saying that exchange rates are moving all the time so if you are watching the rate and would like to be alerted to a particular level why not make a free enquiry or quote request with me? Just email jmw@currencies.co.uk outlining your situation and I can provide a forecast and information on how to get the best rate and the most from the market.
I look forward to hearing from you
A slight rebound for Aussie rates.. How far can we expect it to go and will it last?
GBPAUD has rebounded after touching the lows of 1.50 over a week ago. Australia has called an election for September which has potentially created some uncertainty. I expect the Aussie will weaken in the short term and that we could see some better buying levels, however these are unlikely to be sustained.
Tomorrow we have the HSBC Manufacturing PMI from China which is usually one of the big market movers on AUD as the Chinese economy is one of the big drivers of Aussie strength.
The current trend lately has been Aussie strength and there does appear to have been a little uncertainty creeping back into the market, particularly with the US economy reporting -0.1% growth this week. I expect the Aussie could weaken by a cent or so tomorrow unless the PMI data is much better than expected. If you are buying Aussies this could be a good time to buy since generally speaking the UK and the pound is suffering at the moment.
If you have an AUD currency transfer to consider why not get in touch to be kept up to speed with the latest news and events that will move your rate. We always aim to get our clients much better rates than other sources and would be pleased to speak with you to ensure you don’s suffer at the hands of bad exchange rates or complacency. Please feel free to contact me Jonathan directly on 00 44 1494 787 478 or email me jmw@currencies.co.uk for more information.
I look forward to hearing from you, thank you.
‘Hope for the Best, Plan For the Worst’
Exchange rates are much like weather, accurate predictions are almost impossible. You can make as much preparation as possible but still be caught out by unexpected changes.
Exchange rates like weather do follow reasonably predictable trends with certain limits however. It would be a shock for it to start snowing in July in the UK but not impossible. This is similair to saying GBPAUD could go to 1.70. It could but it is highly unlikely.
Understanding what is driving the rate and is keeping levels where they are is a key component of getting the best deal. All too often we have clients who have a short term requirement and is magically hoping for the exchange rate to climb sometimes 10 cents in a short space of time.
Getting the best rate may actually mean trading at a level you previously did not want to. As many a wise man and woman has stated it is often best to hope for the best, plan for the worst. Some kind of contingency plan is always sensible to make sure you do not miss out. For a free, no obligation discussion of your currency transfers please feel free to contact me directly. Getting your timing on a currency deal is very important so even if your transfer is just a one off do not hesitate to get in touch for more information. Think of it as putting an umbrella in your bag when you don’t know quite what the weather may do. It will only take you a minute to do but could end up being a godsend if you need it.
You can contact the author directly on jmw@currencies.co.uk or call (+44) 01494 787 478.
Important few days for anyone interested in GBPAUD Exchange Rates. Will we hit 1.50 by the end of the week??
Currency markets move on trends and there is currently lots to be positive for on the Australian Dollar. This is why the Australian Dollar is touching some of the best rates in 6 months.
When will we hit 1.60? This is a question I am being asked frequently by people looking to move their life savings or house sale funds over to Australia. For the time being such rates look out of the question and it looks like anyone with their heart set on such levels may have to wait a long time, indeed it is likely the rates could get worse before they get better.
The Chinese Effect This Friday we have a whole host of Chinese data released to the markets, the key release for me being Chinese Gross Domestic Product or GDP. This is a measure of how their economy is growing. The rate has in recent years been slowly falling but we have seen it steady in recent months, an indication that the economy is not about to suffer a ‘hard landing’.
Make no mistake this is the release which could really affect sentiments on the Aussie. Quite simply if China is doing well, the Australian dollar will perform better. It will therefore become more expensive to buy.
What may happen on Friday? Well the recent Chinese data sets have showed good data in Manufacturing sector, a key component of Chinese GDP. Non Manufacturing data was also positive so it is difficult to see evidence of any ‘hard landing’ or even a soft landing. Also the Chinese trade balance figures improved and this all points to an economy faring well.
Consequently we could easily see some positive data lend further support to the Australian dollar making it yet more expensive to buy. The pound is looking very much on the backfoot at present and further gains towards 1.50 look very real. Saying that a bad data set could easily tip the scales back in the favour of those buying Aussies. On balance I would expect 1.50 to be hit before 1.60…
To be kept up to speed on the latest news and future outlook on any transfers involving the Australian Dollar please feel free to speak with me directly. I work as a specialist currency broker and can offer information on the tools to get you the very best rates of exchange. jmw@currencies.co.uk , 01494 787 478
