Category Archives: Australian Dollar Forecast

Australian Dollar exchange rates have a volatile 24 hours – Lowe sees a bright outlook (Daniel Wright)

The Australian Dollar has had a fairly turbulent time over the past 24 hours, with fairly large swings against most major currencies.

Leading up to the Federal Reserve interest rate decision over night the Australian Dollar initially gained ground. Janet Yellen, Chair of the Fed then announced that the U.S will aim to start cutting back its QE (Quantitative Easing)  program and that they still plan on an interest rate rise in the coming months.

This led to a little USD strength and weakness for the antipodean currencies (AUD,NZD and ZAR) as we saw investors shift funds out of riskier currencies and into the Dollar following this slightly more positive news.

Earlier today we then saw Governor of the RBA Philip Lowe comment to the American Chamber of Commerce in a speech he called ‘the next chapter’. Lowe was fairly positive about the economy going forward and this gave the Australian Dollar a minor boost back once again in a volaitle period for those that have Australian Dollars to buy or sell in the coming days, weeks or months ahead.

For anyone with an interest in GBP to AUD or AUD into GBP you should be aware of Prime Minister Theresa May speaking about Brexit tomorrow which may lead to a particularly volatile day for the Pound.

If you have a pending currency exchange to carry out in the coming days, weeks or months then it would be prudent to get in touch with me directly no matter who you were planning to use. I have had thousands of people contact me through this blog over the years that had planned to use their bank or their current broker and the vast majority have ended up using our company instead due to better exchange rates and a smooth and efficient customer service.

If you would like to get a free, no obligation quote to compare against what you are currently being offered then you can email me (Daniel Wright) on djw@currencies.co.uk with a brief description of your needs and I will be more than happy to contact you personally.

Will Theresa May strengthen the pound against the Australian dollar?

This Friday UK Prime Minister Theresa May is set to deliver a life after Brexit speech and economists are predicting a volatile day for sterling vs Australian dollar exchange rates. An EU official has stated that she has an important intervention to make however has made no further comment.

Rumours are suggesting that the Prime Minister may back track from comments made by her fellow peers within the Conservative party and actually state the UK will be paying the EU an amount of euros to depart. If this is the case I expect the pound to rally against the Australian dollar as the UK are one step closer to negotiating a trade deal with the bloc.

However if the rumours are not true and she exclaims that the UK and EU are struggling to come to an agreement then this could lead to a major sell off of sterling and the recent gains for Australian dollar buyers could diminish. Personally if I were buying Australian dollars if we see a shift above 1.70 I would seriously be tempted to take advantage before the pound finds itself under pressure again when Brexit negotiations begin towards the end of the month.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

** IF YOU ARE ALREADY USING A BROKERAGE TO BUY YOUR CURRENCY IT WILL TAKE TWO MINUTES TO EMAIL FOR A COMPARISON AND I AM CONFIDENT I WILL BEAT ANY PRICE YOU ARE CURRENTLY RECEIVING  **

Will the GBPAUD rise back to 1.70?

The pound has slipped below the 1.70 mark we briefly touched as investors initial excitement at the prospect of a UK interest rate hike begins to fade. The pound soared last week breaking the 1.70 mark but this was not sustainable, the Australian dollar has been much weaker too but we have seen it regain some strength back too. With almost 5 cents improvements from the worst rates in a very short space of time there are some very good arguments for buying Australian dollars with pounds at present, however there is more important news this week that could influence the rates.

A more optimistic tone from the Reserve Bank of Australia’s Minutes released this week also predicted two hikes in 2018 and talked of the recent highs in Iron Ore prices, all positive news that has helped the Aussie. This is all in contrast to last week when a board member Harper stated he felt that there was little the RBA could do and that the main driver on the AUD was movements on the US dollar.

Big news this week will be the US Federal Reserve Interest rate decision this evening. There is a very strong relationship between the US dollar and the Australian dollar, investors will essentially look to capitalise on the stronger interest rates in Australia but with the US also on a path to raising their own interest rates we could easily see big swings.

Governor Philip Lowe is also due to speak tomorrow and his comments will be watched closely for signs of how he views the possibility of raising interest rates. Friday we have a very important speech from Theresa May in Florence on Brexit which could really see the pound stronger if as expected she indicates a commitment to paying some form of Brexit bill.

GBPAUD is much improved and may well rise higher but it would be a shame for Aussie buyers to miss out on the current much higher rates. If you have a transfer to make and wish to get some extra information to help make a decision on an exchange please contact me Jonathan watson by emailing jmw@currencies.co.uk.

Could the Pound hit 1.70 against the Australian Dollar this week? (Tom Holian)

The Pound vs the Australian Dollar has been flirting with rates of just up to 1.70 before hitting resistance levels and falling. The Pound has made some strong and consistent gains vs the Australian Dollar especially during last week after a number of positive UK data releases.

UK Retail Sales are due for release in the morning and if the figures come out better than expected we could see GBPAUD exchange rates trending towards 1.70 during tomorrow’s trading session.

On Wednesday evening the US Federal Reserve are due to meet to announce their latest interest rate decision. The expectation is for no change but the accompanying rhetoric could cause GBPAUD rates to move depending on whether the Fed mention that another rate hike may be coming.

With Theresa May due to speak in Florence on Friday about her plans for Brexit we could see a lot of volatility and it is not clear how the markets may react.

Ultimately the Brexit issue is keeping GBPAUD exchange rates under a lot of pressure and until we get a clearer path as to how Britain’s future may look we could see a difficult time ahead for Sterling exchange rates.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

GBPAUD reaches 8 week high

The pound has been on the charge of late and GBPAUD exchange rates have reached an 8 week high!

This week UK inflation numbers rose to 2.9% which promoted the Bank of England to release a hawkish statement after the interest rate decision.  Members of the monetary policy committee hinted that an interest rate hike could occur in the upcoming months if inflation continues to rise.

Personally I believe the Bank of England have artifically strengthen sterling in a bid to curb the worrying inflation levels and an interest rate hike this year is extremely unlikely. Nevertheless the Bank of England have provided a window of opportunity for Australian dollar buyers.

This week the Reserve Bank of Australia are set to release their latest minutes Tuesday morning. I don’t expect the minutes to provide any further insight to interest rate decision moving forward as the Governor will not want the Australian dollar strengthening any further in the upcoming months due to speculation.

Later in the week UK Prime Minister Theresa May is set to deliver a speech in Florence outlining life after Brexit. EU Parliament negotiator Guy Verhofstadt has exclaimed the UK Prime Minister will make an “important intervention” and if this is the case GBPAUD could rise or fall dramatically. The problem clients have that are converting GBPAUD is trying to predict Theresa May is impossible.

If you are trading GBPAUD in the upcoming weeks, months or years and want to save money, feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company drl@currencies.co.uk.

** 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 minutes and in the past I have saved clients thousands! **

Will the RBA raise interest rates anytime soon?

Earlier this week the Australian Bureau of statistic released the latest jobs numbers which impressed for the Australian dollar. 54,200 jobs had been created up from 27,900 in July, and the prediction was for a figure below 40,000. Earlier in the month inflation numbers pushed past the Reserve Bank of Australia target rate, therefore pressure is mounting on the Reserve Bank of Australia to provide further information on monetary policy going forward.

Personally I expect the Governor to continue to deflect speculation that an interest rate is on the horizon as further Australian dollar strength could lead to a downturn in the economy and the amount of jobs being created according to the Governor himself.

My opinion is that if economic data continues to impress for the remainder the likelihood is that the RBA will tighten monetary policy early next year. This week HSBC have made similar predictions that an interest rate will occur in quarter one of next year.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

Pound to Aussie Dollar rate hits an 8-week high after Bank of England hints at a rate hike, will this upward trend continue? (Joseph Wright)

The Pound rose sharply today against all major currency pairs after comments from the governor of the Bank of England buoyed the markets.

Up until lunchtime today it had appeared that the Bank of England hadn’t planned on hiking interest rates in the UK until 2019, but that changed this afternoon after a number of comments from Mark Carney (the governor of the Bank of England) hit the financial headlines.

After a higher than expected inflation figure earlier this week, the Pound had climbed slightly on hopes that the BoE would act sooner, and today those hopes materialised which is why we’re seeing the Pound climb so steeply.

Generally speaking, an interest rate hike is considered a positive for the underlying currency in question, hence the sharp rise as the markets mere mostly shocked.

Carney stated that the possibility of a rate hike has increased, and that rates may need to be adjusted in the coming months. He also stated that that he was among the majority of the Monetary Policy Committee members that believe some withdrawal of monetary stimulus will be needed in the coming months.

With comments such as these I expect to see the Pound continue to climb from its current levels, especially if they continue and the rate hikes are carried out.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

A fairly quiet end to the week for Australian economic data – Bank of England interest rate decision is key today on the markets (Daniel Wright)

The Australian Dollar has remained fairly strong over the past few weeks, mainly down to the Australian economy still posting fairly strong GDP, a strong labour market and solid business investment in recent data.

The one thing that has held the Australian Dollar back has been the weakening of commodity prices and the issues with North Korea causing the perceived ‘riskier’ currencies to lose a little strength.

Chief economist at NAB (National Australia Bank) recently commented that he feels the RBA (Reserve Bank of Australia) may look to raise interest rates in mid 2018 should this trend of positive news continue.

Today will be key for anyone with an interest in buying Australian Dollars with Sterling or selling Sterling to buy Australian Dollars. At Midday in the U.K we have the Bank of England interest rate decision and monetary policy statement. Recent news this week has shown that inflation in the U.K is rising at a fairly rapid pace and currently is sat at 2.9% whilst average earnings figures are only creeping up at 2.1%.

It is doubtful that we will see any changes to interest rates from the Bank of England but what will be key is any indication that the rates may move sooner than the expectation of 2019 then GBP/AUD exchange rates may well be in for a volatile afternoon, or night if you are based in Australia.

If you have a currency exchange to carry out in the coming days, weeks or months then it would be prudent to get in touch with us directly here as we are experts in this field and can both save you money and ensure your funds arrive where they need to be in a smooth and efficient transaction.

Should you wish to contact me (Daniel Wright) personally then you can get in touch with me by email on djw@currencies.co.uk or by contact our trading floor during U.K trading hours on +44 (01494 725353) quoting Australian Dollar Forecast and asking for me personally.

Will GBPAUD hit 1.70?

Expectations for the GBPAUD rate to keep rising seem now linked inextricably to the likelihood of the UK raising interest rates. GBPAUD rose yesterday from 1.62 to now near 1.66 as markets believe there is an increased likelihood the UK will raise interest rates to combat rising Inflation. The Australian dollar has been performing quite well itself, in the short term this could be a spike to be seriously considering for AUD buyers.

Looking further at what we can see ahead for the UK and the pound this morning’s Unemployment data at 09.30 am UK time and tomorrow’s UK Interest rate decision are the key pieces of news to monitor for movements on GBPAUD. Should the Bank of England acknowledge that improving Inflation is a cause for concern and the market detect signals of a rate hike sterling could well have another good couple of days.

I don’t actually think we will see any UK interest rate hikes for quite some time, the rising Inflation was actually caused by increases in the price of clothes and shoes. I fail to see how this will really be enough of a trigger for the Bank of England to actually go ahead and raise interest rates but nevertheless the speculators will probably seek to push the market higher as a consequence.

If you are buying or selling Australian dollars with pounds this latest movement has presented some excellent short term opportunities. The outlook for sterling remains mixed so making plans around potential spikes is key to maximising your exchange rate. We aim to ensure out clients are totally informed of all the latest trends, news and themes to help them make an informed choice about what is the best way forward.

Fore more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you and assisting in the future.

Sterling rallies against the Australian Dollar after UK Inflation Data (Tom Holian)

The Pound made some surprise gains vs the Australian Dollar during today’s trading session with the announcement of the latest UK inflation data.

The latest measure showed an increase to 2.9% and this could put a small amount of pressure on the Bank of England when they meet to discuss their latest monetary policy on Thursday.

The chances of an interest rate hike as far as I’m concerned is a long way from happening and rumours are that we won’t see a rate hike until 2019. However, if inflation continues to rise in the UK then this could see a rate hike being brought forward.

Tomorrow morning UK unemployment figures come out followed by Average Earnings. With the disparity between average earnings and inflation this could potentially cause today’s gains to be eroded.

Therefore, if you’re in the process of making a currency purchase involving Australian Dollars then make sure you keep a close eye out on the UK’s economic data in the morning.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.