Category Archives: Australian Dollar Strength

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 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.

Sterling Rallies Against the AUD – Will the BoE Hike Interest Rates? (Matthew Vassallo)

The Pound has rallied against all the major currencies, including the AUD, following comments last week from the Bank of England (BoE) regarding a prospective interest rate hike.

With November touted as a possible timeline for this, the markets reacted positively with GBP moving above 1.70 against the AUD.

The AUD has found some support over the past 24 hours, moving back below this threshold but the gloom around the UK economy has lifted slightly following last week’s announcement.

Personally, I would be wary about taking the prospective rate rise as a given, as it was only last month that BoE governor Mark Carney stated that the central bank would not be raising rates whilst Brexit negotiations were on-going. The reasoning behind this was due to the huge amount of uncertainty currently surrounding the UK economy and its future prospects following our separation from the EU.

Rising inflation levels are the potential trigger behind this change in stance but I’m still not fully convinced that the BoE will act unless absolutely necessary.

Any clients holding Sterling should be looking for short-term opportunities, rather than gamble on longer-term sustainable gains and as such the current market price looks appealing.

Looking at the Australian economy and last night’s Reserve Bank of Australia (RBA) minutes suggested s steady increase in the jobs market. Despite an upturn in this sector wage growth and household debt remain a concern. Therefore, all signs point towards the RBA leaving their base rate of 1.5% on hold for the foreseeable future.

Being a commodity based currency the AUD relies heavily on global growth remaining strong and whilst the current climate is pushing investors towards the AUD and its higher yielding interest rates, any slowdown in its export sector will hit the Australian economy hard and the AUD will almost certainly suffer as a result.

A strong AUD relies heavily on the export of Australia’s vast supply of raw materials to China, so any clients looking to buy or sell AUD should have a strong interest in Australia’s monthly trade balance figures.

If you have an upcoming GBP or 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 inning 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.

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! **

Bank of England to dictate GBPAUD exchange rates tomorrow

Earlier in the week UK inflation numbers gave support for the pound and GPBAUD exchange rates has increased 4 cents in the last couple of weeks. To put this into monetary terms a 200,000 Australian dollar purchase is now £3,000 cheaper.

Tomorrow the Bank of England will release their latest interest rate decision and I expect this decision to dictate exchange rates for the remainder of the week. Even though inflation numbers now sit at 2.9% I don’t expect the Bank of England to hint towards a future interest rate hike and if anything I expect the Governor of the Bank of England Mark Carney to talk down the pound.

In recent months Mark Carney has insisted that monetary policy will be dictated by developments coming from Brexit. At present UK and EU negotiators cant find common ground in regards to how much the UK will pay to leave the EU and EU citizens rights therefore this is my reasoning why I dont expect this event to help the pounds value.

Short term Australian dollar buyers may wish to purchase there currency at some point tomorrow morning. 

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 0044 1494-787478 and ask to be put through to Dayle Littlejohn.

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 gets much needed boost against the Australian Dollar (Daniel Johnson)

Brexit vote boosts the Pound

Sterling has strengthened against the Aussie following what Theresa May called a “historic decision to back the will of the British people.”

Parliament passed a vote to accept some European law which is progress in regards to Brexit negotiations. GBP/AUD has now risen to 1.64. Brexit is a key factor in the value of the pound and the current level uncertainty has made investors reluctant to move to the pound. This spike is certainly welcome.

Inflation key to Interest Rate levels in the UK

The question is will this rally continue?  We have CPI data this morning which is a measure of inflation based on the price changes of goods and services. This is being very keenly watched by investors and market analysts alike. Inflation has seen a rapid rise in the UK this year at one point hitting 2.9%. There were rumors if it continued to increase the Bank of England could hike rates. The next results showed a fall to 2.6% , and today’s figures are expected to come in at 2.8% which could again put a rate hike on the cards and boost Sterling value.

I am of the opinion a rate hike is not a solution to the problem and that in order to solve the inflation problem we need clarity on Brexit and a stable government. The rapid rise in inflation is a direct result of Brexit and the weak value of the pound, goods are now more expensive to purchase from business and that increase is being passed on to the consumer. If average wage growth does not keep up with inflation the economy could be facing serious problems. average wage growth is currently some way behind inflation at 1.8%. The new figures are released tomorrow. Inflation and average wage data could well influence the interest rate vote by the MPC on Thursday. There is definitely the possibility of volatility.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

Will GBPAUD fall below 1.60?

The pound might well easily fall below 1.60 in the future as global conditions continue to favour the current trends we are witnessing on the currency pairing. Expectations for the pound remain confined to the uncertainty over future direction on the Brexit which does not look like being resolved any time soon. If you look at the timelines we have until 2019 for a deal to be arranged for the UK. Of course there is lots to sort out but it is more than likely the negotiations will go down to the wire.

Next week is a very important one for Australia with the latest Unemployment data released. This data has so far been a key indicator as to the strength of the Australian economy and therefore the Australian dollar. If you need to buy Australian dollars this release next week will be the key point of information to be focusing on.

Markets will move for a whole range of reasons, movement on the AUD is further complicated by its relations to international events which influence global attitudes to risk. Generally speaking markets are volatile with a number of key developments with North Korea and the United States. Such concerns can weigh on the Australian dollar which may see some big unexpected swings.

Overall the weakness of sterling seems like it will continue to drag the pair down, the improving and consistent economic picture in Australia should help this trend further. Rates below 1.60 seem a very real possibility in the coming weeks and months. There does remain however the very real possibility events like North Korea shake markets and we see the Aussie suffer.

If you have a transfer to make in the future please speak to us today to learn of the latest news and events in the future that could move your rates. Please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

 

GBP AUD Weak on Brexit (James Lovick)

GBP AUD exchange rates remain under pressure largely as a result of Brexit uncertainty in the UK which is keeping pressure on the pound. At the same time a buoyant Australian economy and an overheating housing market down under are helping keeping the Australian dollar supported. The Reserve Bank of Australia finds itself unable to lower interest rates and risk overcooking the economy. If anything the next move will be up and this is helping support the dollar.

Brexit Update – GBP AUD

Those clients with a pending requirement to either buy Australian dollars or sell Australian dollars would be wise to be kept in the loop with Brexit developments here in the UK. Brexit is the single biggest driver for GBP AUD right now and the weakness in the pound still presents those clients who are selling Australian dollars with an excellent opportunity to convert. If you have a transfer to make whether it be from a property purchase / sale or other investment then please get in touch to see how we can assist. Timing is everything in these markets.

A big day for the currency markets is looming when UK Prime Minister Theresa May is expected to give a speech around the 21st September which is likely to centre on Brexit and new details are likely to be offered. The last time she gave a speech like this was back in January this year at Lancaster House and the pound rocketed almost 2% immediately after.
My view is that this will be a very well crafted speech and the markets will probably receive it very well with gains to be expected for the pound, especially if history repeats itself.

Those clients with a requirement to sell dollars would be wise to consider moving ahead of this speech which will take place in around two weeks’ time, no date has officially been confirmed.

Those clients looking to buy Australian dollars with pounds would be wise to position themselves ready with funds available and in place so if there is a good jump higher we can lock in the rate at the higher levels. Please email me if you would like to discuss and to take a closer look at your potential requirement.

Meanwhile the Great Repeal Bill is being debated in the House of Commons and will be voted on early next week. Any holds up could see GBP AUD weaken in the short term although the bill is widely expected to go through without a hitch. I am not expecting problems here.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Brexit Negotiations Continue to Weigh Heavily on UK Economy (Matthew Vassallo)

GBP/AUD rates remain marooned under 1.65, as the Brexit stranglehold continues to restrict any major advances for the Pound.

Despite the current negativity surrounding the UK economy, the Pound has managed to find support above 1.60. Its current market value is floating around 1.63 but any move above 1.65 is unlikely in my opinion, whilst market conditions remain as they are.

The Australian economy has moved forward in recent months and despite its heavy, sometimes unsettling reliance on China, there is no hiding from its growing prosperity.

Considering the current malaise and negative perception surrounding the UK economy, I would certainly not be gambling on any major spikes for the Pound. Instead I would look to protect any short to medium-term GBP/AUD positions whilst mid-market prices remain above 1.60, which could become a key threshold for the pair.

The issue many clients holding Sterling have is that they recall historical rates, when only 18 months ago the pair was trading above 2. However, conditions have shifted and Brexit has pushed the UK into uncharted territory, weighing our economy down and sapping confidence from every quarter.

Whilst no one can see into the future it is extremely unlikely that we will see rates even close to that for the foreseeable future and as such clients to realign their potential goals in line with the current market conditions.

This does not mean that GBP/AUD rates will move one way indefinitely, so those willing to gamble on their positions need to look for short-term gains not long-term sustainable improvement.

If you have an upcoming GBP or 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 inning 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 exchange.