Category Archives: Australian Dollar Forecast

Pound to Australian Dollar rates dip heading into the first weekend of campaigning (Joshua Privett)

Politics is still the name of the game in governing Pound to Australian Dollar exchange rates, with the first weekend of campaigning in the UK General Election making a few investers nervous as we enter into the weekend.

So why the dip?

This is the first weekend of heavy campaigning following the announcement last Tuesday from Theresa May, calling for a snap-election in the UK, which saw Pound to Australian Dollar exchange rates rise to multi-month highs over the course of 36 hours of trading.

However, this weekend’s campagining has made a few investors nervous, which is why Sterling fell away slightly from the recent highs very late on Friday afternoon.

This is the first weekend where each major party will be alluding to what will be key features released in their manifestos, so there is a strong potential for a shift in the polls. Labour have already come out swinging with Jeremy Corbyn stating that Labour will add 4 more bank holidays per year to the calendar if elected.

With so much unknown the Pound weakened, however, should the polls show few surprises on Monday, Australian Dollar buyers can be fairly confident of a recovery as we progress further into the week.

With no news coming out to affect the Australian Dollar until Wednesday with a measure of Australia’s inflation to be released, this will likely be the governing narrative until then.

In such a politically fluid landscape, a premium is put on being a well-informed purchaser, and being able to move quickly to avoid being ‘last to the party’ should any opportunities emerge, or to avoid being ‘caught out’ should rates deteriorate whilst you are busy at work during the day.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Where next for GBP/AUD? (Daniel Johnson)

Snap Election causes Sterling rally

Theresa May announced on Tuesday she would be calling a general election 8th June. Historically, a snap general election would cause the currency in question to weaken, but on this occasion the opposite has occurred. The conservatives are currently significantly ahead in the polls and are solid favourites to win the election. It was a shrewd move by the Prime minister , almost guaranteeing another term in office by timing the election when the competition is so weak.

A conservative government is considered to be positive to the UK economy and investors gained confidence following the announcement and the pound has strengthened considerably over the Australian dollar as a result.

Trade Negotiations a key factor in Sterling value

Following the triggering of article 50 the progression of trade negotiation will be crucial to the value of the pound. Theresa May has already stated the two year target could be unrealistic. A fact that Sir Ivan Rogers, the Head ambassador to the EU pointed out upon his resignation. Sir Ivan thinks it could take up to ten years. The quickest US trade deal took four years so indeed  two years was very optimistic.

Australian Property Bubble and Heavy Reliance on China

Chinese data has not been too strong of late and this could impact the Australian Dollar due to Australia’s heavy reliance on export to the Chinese. Keep a close eye Chinese data releases if you have an Aussie dollar trade pending. The property price problem echoes that of London at the moment with inflated prices around the major cities. This could cause problems for the Australian economy if the property prices outweigh an increase in the average wage. If tensions continue between the North Koreans and the Chinese this could also have a knock on effect to the Australian economy.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Testimonials – Daniel Johnson

 

Daniel Feller

Daniel Feller and his family live in Melbourne, Australia, having made the move there from the UK some years ago. Following their decision to make extensive renovations to their Australian property Daniel needed to send money from his bank account in the UK to Australia.

Why Daniel exchanged foreign currency

Daniel and his family needed to transfer Pounds to Australian Dollars and send the money from the UK to Australia to fund their house renovations. Having been recommended to use Foreign Currency Direct by a friend in Melbourne who had used the service before, Daniel got in contact. Daniel was quickly speaking with his dedicated currency broker and discussing his requirements and situation in order to help maximise his Australian Dollar return. Daniel commented, ‘My dedicated broker, Daniel Johnson explained the process really clearly, and it all sounded straightforward. I had been recommended by a friend so I knew they were trustworthy’.

With a significant amount of Australian Dollars required, some complex transactions and the timing important, Daniel was looking to get the best exchange rate at the time. ‘The service was very efficient, a quick discussion and I needed to fill in some online forms. The security process was simple and reassuring and I was very happy with the exchange rate I received’.

What Daniel had to say about the service

Following the introduction by a friend, Daniel used Foreign Currency Direct to convert his Pounds to Australian Dollars. After the transaction Daniel said, ‘It was quick and easy. Dealing with the same person throughout the process was helpful as they knew everything about my situation. I was also very impressed by the speed of the transfer to Australia!’

Will the Pound hold onto its recent gains and remain above 1.70 versus the Australian Dollar? (Joseph Wright)

The Aussie Dollar has lost quite a lot of value against the pound recently, making converting Pounds into Aussie Dollars a much more attractive proposition.

All major currencies have lost value against the Pound in recent weeks as the clarity of the Brexit plan and the snap election called by Theresa May (UK Prime Minister) have offered the UK economy some much needed certainty which has resulted in a boost the Pounds value.

Sterling is currently trading at 2017 highs against most major currency pairs, and those planning on making a Pound to Aussie transfer may wish to consider that the Aussie Dollar has been losing value against the US Dollar as well as against Sterling, which suggests to me that the currency is coming under pressure generally speaking.

It’s for this reason I’m expecting to see the Pound to Aussie exchange rate continue to climb and consolidate above 1.70, but Sterling sellers must be aware that the currency could be vulnerable should it become public that trade negotiations are going badly.

Economic data out of the UK is also becoming increasingly more important, as the currency has been driven mostly by political unfoldings for the past year whereas investors are now keen to keep a close eye out on how the UK economy is performing during these sensitive times. If you would like to be kept updated regarding these events do feel free to get in touch.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Should I sell Australian dollars and purchase sterling now? (Dayle Littlejohn)

I was only suggesting this weekend in a recent post click here to read more, that any person holding onto Australian dollars waiting to convert into sterling should seriously consider taking advantage of current exchange rates.

With Theresa May’s shock announcement that the UK public will take a trip to the polling station on June 8th, the pound has continued to make inroads against the Australian dollar. For clients that took my opinion on board, a 200,000 Australian dollar transfer into sterling would have generated them an additional £3,000.

The reason why the pound has gained momentum off the back of the announcement is the market is pricing in Theresa May will win a majority and will therefore have more power when negotiating the final Brexit deal. Couple this a potential slowing Chinese Market and Donald Trump causing volatility for commodity currencies I still believe now is the time to sell Australian dollars and buy pounds.

Economic data is thin for the remainder of the week for the Australian dollar. A release that will have a direct impact on GBPAUD exchange rates is the speech by Governor of the Bank of England Mark Carney on Thursday morning. I wouldn’t be surprised to see the Governor quizzed about the snap election and with the recent positive run, he could try and talk down the pound which could be a small spike to look out for if selling Australian dollars.

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade Australian dollars at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company 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.

GBPAUD hits 1.70! What next?

The pound to Australian rate has hit the 1.70 mark as investors embrace Theresa May’s plans to call a snap General election. Expectations for the pound are now very much positive as investors find answers to some of the questions of uncertainty which have been plaguing the pound in the last few weeks and months. This is not just a story about the pound, of course, the Australian dollar has fallen back as the RBA indicate what many of us suspected some time ago, further interest rate cuts down the line are a real possibility.

GBPAUD could now move much higher as some of the previous reasons to hold on to Australian dollars evaporate. Expectations for the Australian dollar to move higher have been largely hampered in recent weeks as a mixed bag of economic data and a stronger pound makes life difficult for Australian dollar sellers. If you have Australian dollars to sell and are hoping for big improvements you might need to remind yourself of just how much the market has improved for you since the Referendum! With over 40 cents between the high and the low Australian dollar sellers are now at some of the best rates they have had since 2013!

GBPAUD could now well rise further, particularly since the likelihood is Theresa May will win the election with a very large majority. The overall expectation for the rates is that we could now easily test 1.80 in the next 4 weeks. If you have a transfer buying Australian dollars then making some plans in advance is vital to the understanding of where rates might head.

We could now be about to break into some very much fresh ranges and any clients with an expectation to buy or sell the Australian dollar should be doing what they can to plan in advance for future volatility. If you have a transfer to make and wish to get an overview of the market and receive some updates and news on what might be happening please feel free to get in touch directly with me Jonathan by emailing jmw@currencies.co.uk.

Pound to Australian Dollar exchange rates poised for further gains (Joshua Privett)

Pound to Australian Dollar rates are sitting more comfortably in the mid 1.60’s now after repeatedly being close to knocking on the door below 1.60.

The key turnaround point has been in the global appetite to risk recently. Escalating tensions between the US and North Korea and the US and the Syrian conflict is not only driving up the price of gold. Currency markets also reflect the landscape.

Riskier currencies – those not in as high a circulation, and tied to more volatile markets such as commodities – tend to get hit heaviest in these situations.

Last week some strong Australian employment data (a bit of an understatement, they added 9 times as many jobs to the economy than expected) reversed this trend somewhat, but the Pound is already beginning to regain some of its lost ground.

With the North Koreans attempting another nuclear test over the weekend, these heightened tensions are not going away. However some Chinese data coming out over the next few days should continue to highlight some of the positive features of Australia’s trading relationship with China, and therefore bolster the AUD in the short-term.

As such Australian Dollar sellers should see the beginning of next week as an opportunity. Waiting is, at this point, a judgement that the heightened tensions surrounding Syria and North Korea will be resolved shortly.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Why I should sell Australian dollars and buy pounds now (Dayle Littlejohn)

For the last 10 months Australian dollar sellers buying sterling have experienced fantastic rates of exchange however I believe it’s only a matter of time until the pound starts to claw back losses.

The Australian dollar has been under pressure for the last 7 days due to the increase in global tension because of Syria and North Korea. At times of uncertainty commodity currencies including the Australian dollar are sold off as they are a risk.

China’s Monetary policy program is reported to have stopped having a positive impact on the Chinese impact which will overtime have a negative impact on the Australian dollar. It was reported a few weeks ago, Chinese Debt now represents 250% of their GDP.

As for the pound UK Prime Minister Theresa May has triggered Article 50 which has bought some stability and certainity to the pound.

If you emigrating to the UK and are holding Australian dollars waiting to purchase sterling, I believe now is the time to trade.  The currency company I work for can achieve clients fantastic rates compared to their banks.

To get an understanding of the process, I recommend emailing me with your requirements (amounts, timescales) and I will respond with the process of using our brokerage drl@currencies.co.uk.

Data releases to look out for next week

To start the week China are set to release their latest GDP numbers. As I have stated above their is a correlation between China and Australian dollar exchange rates. If their is going to be a slow down in China GDP numbers will start to fall at some stage.

Tuesday morning the Reserve Bank of Australia release their latest minutes. This release shouldn’t spring any surprises. To finish the week Australian Bank business confidence will be release Thursday morning.

Enjoy your easter weekend

Pound to Australian Dollar hits 3 month high (Tom Holian)

The rate to buy Australian Dollars with Sterling has hit its highest level since January as fears are increasing that the Chinese are showing signs of a slowdown.

This has caused the commodity based currencies including the Australian Dollar, New Zealand Dollar and South African Rand to weaken against the Pound creating some excellent opportunities to buy Australian Dollars with Sterling.

There is a lot of economic data coming out overnight from China including Imports, Exports and Trade Balance data which have shown signs of slowing down.

Also, overnight we have the release of Australian unemployment figures so if both data sets are negative we could see the Pound make even further gains against the Aussie Dollar.

Furthermore, with political tensions increasing in the Middle East this has caused a concern to global investors who have been selling off the Australian Dollar in favour of safe haven currencies including the US Dollar and Swiss Franc.

If tensions continue to rise I would expect the AUD to suffer vs the Pound so if you need to make a transfer to Australia then it would be worth keeping a close eye on what is happening politically.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you bank beating exchange rates but also help you with various contract types.

If you would like a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Will risk aversion within the markets continue to weaken the Aussie Dollar? (Joseph Wright)

The Pound is proving resilient in the current market, and despite posting losses towards the end of last week after some less than impressive economic data releases the Pound is remaining strong.

Last Friday data revealed a decline in UK industrial/manufacturing production, and it was also announced that the UK’s trade deficit has expanded. Despite this the Pound is still holding onto the gains its made since the Brexit officially begun and for those planning on making a GBP to AUD transfer, it’s worth noting that the Pound is up 7 cents from its lowest point throughout 2017.

The Pound to Aussie Dollar rate has also been boosted due to AUD weakness as the action taken by Donald Trump in Syria has resulted in risk averse markets, and look no further than the boosts to golds value to confirm this. Commodity currencies tend to weaken in times of risk aversion and the Aussies recent moves have left the currency trading at a three-month low against the US Dollar.

There is also the issue of the housing market in Australia overheating and this issue keeps hitting the headlines.

There’s an argument to suggest that a weaker currency is a benefit for Australia’s export driven economy so I wouldn’t rule out a move from the Reserve Bank of Australia in order to weaken the currency further in order to keep the economy competitive.

Moving forward I’m expecting to see the Pound recover more ground from AUD after the initial drop after the Brexit vote. Those converting Aussie Dollars into Pounds are still in a great position after that drop, but the gains are slipping away as GBP/AUD recovers back to levels closer to 1.70 than 1.60.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

Pound to Australian Dollar rates rising with prospect of rate cuts in Australia (Joshua Privett)

The narrative on Australian interest rate changes is deteriorating to the point that Pound to Australian Dollar rates are beginning to visibly benefit, with GBP/AUD breaching 1.67 briefly for the first time since January.

Risk-aversion is now the name of the game, and we’ve seen riskier currencies whose value is largely tied to the commodity markets (oil, mining ores etc) losing ground against the Pound. The Australian Dollar has lost close to two cents on GBP/AUD in 24 hours of trading, and the likes of the New Zealand Dollar and Canadian Dollar saw similar losses.

Firstly, the Australian Dollar had already been softening since the beginning of the week now that reports during March of a potential interest rate hike in the Australian economy have been debunked, with wide expectations now that the idea of a further interest rate cut is a more likely prospect.

So why the sudden turnaround? Future demand has come into question, mainly due to increased tensions in the Middle-East and the lackluster performance of the Chinese economy as of late.

But the key turnaround has also come from currency speculators. Since the US active intervention in the Syrian conflict we are now seeing rife risk-aversion, resulting in mass-sell-offs of riskier currencies such as the AUD in favour of gold and safe-haven currencies such as the Swiss Franc and the Dollar. There is a reason that the Australian Dollar is at its lowest value against the USD since the middle of January.

So at the moment, for Australian Dollar buyers your future fortunes largely depend on the result of US talks with Russia beginning tomorrow. However, despite poor UK inflation data this morning rates are still moving in your favour with this dominant Syrian narrative. Thus it seems sensible to expect further improvements for AUD buyers at least in the run-up to Easter.

Australian Dollar sellers are now in a race to try and secure a sell price below 1.70.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

In an evolving political situation, a premium is put on being in touch with market movements on a continual basis, and this is part of my role here as a trader to keep my clients informed of opportunities and any sharp or gradual changes in currency trends.