Category Archives: Australian Dollar Strength

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.

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.

Australian Dollar Gains on Better Employment Data (James Lovick)

The Australian dollar has come under considerable pressure over the last couple of weeks. Political developments from the US and notably the Trump administration are creating volatility not just for the US dollar but the Australian dollar as well. The missile strike on the Syrian airbase and the warships heading to the Korean peninsula are seeing investors heading for the safe havens notably the Japanese Yen and gold. The commodity currencies which include the Australian dollar have been negatively impacted by a reduction in demand for the riskier assets.

However, the Aussie has however strengthened well this morning after a raft of data overnight. Australian unemployment has held steady at 5.9% but it is the full time employment numbers which almost doubled from the last reading which have had a positive impact.

Why is the French election so important for the Pound vs Australian dollar?

Those clients with a GBP AUD requirement should pay close attention to developments in the French election which is just ten days to go for the first round.
Any suggestion that Marine Le Pen has a chance of winning this presidential election could prove to be a boost for Britain as it will highlight that resentment of the European Union is not isolated to Britain. The negotiations are likely to start on a different footing which one could argue could help the UK and the pound could strengthen. Furthermore a Marine Le Pen win would likely create huge uncertainty and global investors may well decide to pull out of riskier currencies like the Australian dollar. This would have the effect of weakening the dollar.

All of this of course depends on that final outcome but my view is that the markets are yet to start pricing in this eventuality. Those clients looking to sell Australian dollars for pounds would be wise to consider taking advantage of the current attractive levels as the dollar may continue to weaken in this politically uncertain period.

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

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.

Sterling makes gains due to Australian housing market (Daniel Johnson)

Exaggerated Property Pricing hinders the Australian Dollar

The pound suffered against the Australian Dollar on Friday due to poor manufacturing and industrial data. Sterling has been rallying against the majority of major currencies since the invocation of article 50 and more confidence has returned to investors due to more certainty regarding trade negotiations post-brexit.  Sterling has made more significant gains against the Australian Dollar however due to concerns over the considerable rise in property prices down under. There is the feeling that exaggerated house prices could hinder domestic growth.

Melbourne and Sydney are the main culprits. It is a similar situation to that of London, with more people being drawn to the larger cities in the hope of a higher wage. The Reserve Bank of Australia (RBA) may keep  monetary policy accommodating as house prices continue to rise.

Home loans data and investment figures are both down and the Aussie has also faltered against the US dollar, hitting a three month low. The Syrian air strikes could also have been a catalyst as investors leave riskier currencies for safe havens such as the green back or the Swiss Franc.

UK Inflation could cause volatility on the exchange

Inflation data in the UK is due out tomorrow and could cause movement on GBP/AUD. The weak price of the pound has caused imported goods to rise in price and these increases could hit consumers. If there is a rapid rise in inflation without an increase in the average wage it will prove detrimental the UK economy. Keep a keen eye on this release.

If you have a currency requirement I will be happy to assist. It is vital to be in touch with an experienced broker in order to maximise your return. If you let me know the currency pair you are trading, the size of your trade and your time scale I will endeavour to produce a trading strategy and the correct contract to suit your individual needs. If you have a currency provider already I will happily perform a comparison and I am very confident I can demonstrate a considerable saving. I am happy dealing with commercial trades, but my speciality is property transfers. I can ensure the whole process runs smoothly and cost effectively, taking the stress out of your purchase or sale for that matter. We have been in business for over sixteen years and are regulated by the FCA.  Please do get in touch if you would like my assistance. I can be contacted at dcj@currencies.co.uk. Thank you for reading and I look forward to hearing from you.

 

Pound falls against the Australian Dollar after poor UK economic data (Tom Holian)

The rate to buy Australian Dollars with Sterling has fallen from its 3 month high earlier this week after the UK posted worse than expected economic data.

UK Industrial & Manufacturing data both showed a fall in March which led to the Pound weakening against the Australian Dollar after getting close to 1.66 not seen since January.

As well as this data UK GDP data published by the NIESR showed a rise for the last 3 months of 0.5% but this did little to inspire the market.

Bank of England governor Mark Carney’s speech earlier today also suggested that the City of London’s financial institutions need to prepare themselves for all eventualities when the UK formally leaves the european Union.

With the triggering of Article 50 made last Wednesday it is not yet clear how the negotiations will go although they are pencilled in to begin later this month.

I think it will be very difficult for the UK to be successful with the negotiations as Europe has already been struggling to make a trade deal with the US since 2013.

With the UK due to make 27 new trade deals with all the current European Union members I cannot see how this can be completed in the current 2 year timescale.

On Tuesday UK inflation data is due out and this is likely to provide further volatility for Sterling vs the Australian Dollar so if you have a transfer to organise make sure you keep a close eye on this announcement on Tuesday morning.

Having worked in the foreign exchange industry 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 transfer.

If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian Tom Holian teh@currencies.co.uk

 

 

What can we expect next on GBPAUD rates?

The pound to Australian dollar rate has improved further to the highs seen in January almost touching 1.66. There is some important economic data due out today which could easily change the picture on the rates with UK Industrial and Manufacturing data due at 09.30 am and then an estimate of GDP (Gross Domestic Product) at midday. If you are looking to buy Australian dollars you are currently 7 cents higher than the lows that were established below 1.60 earlier this year.

With markets now eagerly awaiting the latest news on the UK economy the big challenges ahead will be the extent to which the UK weathers any poor economic data or the likelihood of any interest rate hike or cut in Australia. Recent comments by the Reserve Bank of Australia indicate that a cut is more likely which could present yet further opportunities for Aussie buyers in the future.

With the market squarely focused on the US too, economic data today could trigger some movements on the Australian dollar. Any speculation the US might be looking to raise interest rates sooner than expected could weaken the Australian dollar as investors sell off Aussies and increase their holdings of the US dollar. The key US data is Unemployment and Non-Farm Payroll data at 13.30 UK time, it will be closely watched by investors and could easily trigger some movements on the GBPAUD rate.

GBPAUD is up at some of the highest levels we have had since January which is presenting a great opportunity for Australian dollar buyers. If you have a transfer to make in the coming days and weeks these rates will not be around for long. To discuss the latest trends and themes which will move your exchange rate please speak to me Jonathan by emailing jmw@currencies.co.uk.

GBP/AUD Rates Remain Range-Bound – Where Next for the Pound? (Matthew Vassallo)

GBP/AUD rates have remained range-bound over recent days, with the Pound struggling to break through 1.65.

The AUD has found plenty of support around this level, despite the Pound gaining a foothold against most of the major currencies since last week’s historic events.

It seems as though investors are still airing on the side of caution when it comes to the UK economy and its prospective future prosperity following the start of our separation form the EU.

It’s a strange time in the currency markets however, as investors and clients alike must start to look forward following the triggering of Article 50 last week. Many clients are asking me how the Pound will react over the coming weeks and I still feel that any clients holding Sterling should be looking for short-term market opportunities whilst the current uncertainty remains.

Its seems as though so much talk and focus was centred around the UK’s Brexit since the unexpected referendum result last June, that people almost forget that there was an active market prior to this point. It does feel like there is something of anti-climax about the whole situation but I’m convinced that talk of Brexit and the negotiations between the UK government and EU regarding terms of the separation will still fill column inches and dominate headlines for months, if not years to come.

However, we also need to move ourselves away from the topic to some extent, as the markets will start to look at other factors and it be that economic data (which is predominantly what drives the currency markets) will start to hold more weight again as we move forward.

Personally, I still feel that the investor confidence in the UK economy is not strong enough to sustainably push GBP/AUD rates towards 1.70. However, any positive developments regarding the UK’s separation and any deals still in place with the EU will probably benefit those clients holding Sterling and inadvertently weaken the AUD as a result.

The AUD has performed well against the Pound for some time but with China’s demand for their huge reserves of iron ore slowing and high labour costs in the mining industry putting pressure on the Australian economy, now could be the time to sell any AUD positions.

Client should to take advantage of what are extremely attractive levels, especially when you consider the history on the pair and not gamble on what has become an increasingly volatile market.

If you have an upcoming GBP or AUD currency transfer to make, then we can help you navigate this turbulent market by keeping clients up to speed with all the latest developments regarding Brexit and beyond.

If you would like us to monitor the market for you ahead of a currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me directly on 0044 1494 787 478 and ask one of the team for Matt.

Alternatively, I can be emailed directly on mtv@currencies.co.uk.