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.

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 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.

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.

What will happen to the Pound vs the Australian Dollar? (Tom Holian)

The Pound has made some small gains vs the Australian Dollar towards the end of the week creating some good short term opportunities for anyone looking to buy Australian Dollars with Pounds.

As we go into next week however things could be very different on Tuesday morning when the UK announces its latest set of inflation data.

Expectations are for a rate of 2.8% for August so anything different is likely to cause a lot of volatility for the GBPAUD exchange rate.

The UK economy has been suffering with rising inflation and at the moment the Bank of England appears to be stuck as to what to do with interest rates.

The most recent rumours are that the central bank will not change interest rates until 2019 which has caused problems for the UK and therefore Sterling.

The Brexit talks continue to also weigh heavily on Sterling exchange rates and as yet there has been no clear direction as to how the talks will go.

At the moment the Tories and Labour party are split as to how to take things forward so if we cannot agree between ourselves it will be difficult to see how things can progress with Europe.

Therefore, I think the Pound will continue to struggle against the Australian Dollar going forward.

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.

 

 

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

GBP/AUD Touches On 20 Day High (Ben Fletcher)

The Sterling Aussie rate jumped to 1.638 at the high of today and there could be optimism of further gains over the next few weeks. Sterling having struggled over the past few months has made some of it’s largest gains against the Aussie today. There had been optimism that the Reserve Bank of Australia would start to consider rate hikes but judging from the latest comments following the RBA’s decision earlier this week, there inst going to be a rate hike till late 2018 at the earliest.

Philip Lowe who is the Governor of the Reserve Bank suggested that it would not be in the public’s interest to consider a rate cut as it would make borrowing even cheaper. The Australian economy like much of the world has a major borrowing culture which has seen a over inflated housing market that the RBA seems to have finally got a hold of. If the Reserve Bank of Australia manage to encourage inflation to pick up then the RBA could be swift to act on a rate hike which would strengthen the AUD significantly. In my opinion neither currency is going to make major gains against the other over the next few months. The GBP/AUD rate has remained range bound just above the 1.60 level and any movement towards the 1.65 level should be considered a rate to capitalise on.

If you do have a upcoming currency requirement and would like to discuss what might be the best option, please send me an email to Ben at brf@currencies.co.uk. The currency markets are always moving and timing a transfer can help make sure you achieve the most for your funds. Working for a brokerage I am able to help you achieve the best rates of exchange and set alerts to make sure you capitalise on any movements on your favour.

Australian Dollar to Pound exchange rate drops as Australian GDP data disappoints, will there be a reversal of the AUD/GBP trend? (Joseph Wright)

The Australian Dollar has recently strengthened quite considerably against the Pound, although the trend has been reversed this morning after Australian GDP figures failed to impress the markets enough for the bullish run to continue.

During the second quarter of this year the Australian economy grew at a rate of 0.8% which was in line with what economists were expecting, and it appears that the Aussie Dollar will need some more positive data to come out in order for the currency to once again reach its post-Brexit vote highs.

The Pound has been coming under pressure in recent weeks after fears surrounding the final ‘Brexit Bill’ cost have surfaced, as well as uncertainty surrounding how the Brexit negotiations are going so far with some suggesting they have got off to a bad start.

Yesterday data out of the UK showed that the services sector within the UK has hit an 11-month low which is important sector for the UK due to it accounting for around 80% of the UK economy. Despite this negative news the Pound is still climbing against the Aussie Dollar which to me demonstrates that the Aussie Dollar bullish run is potentially coming to an end.

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.