GBP/AUD Rates Fall Below 1.60! (Matthew Vassallo)

GBP/AUD rates have fallen below 1.60, with the AUD gaining support ahead of the UK’s Brexit.

The AUD gained momentum during Wednesday’s trading session, pushing rates under the 1.60 resistance level. This has provided those clients holding AUD with another fantastic opportunity to sell their positions, as uncertainty surrounding the UK economy continues to help support the AUD’s value.

The move under 1.60 was also supported by the US FED’s decision to raise interest rates in the US, a result widely anticipated by investors.

It was somewhat surprising to see the AUD strengthen as a result of this, as typically you see it weaken as the AUD is considered a riskier currency. However, last night’s move proves that the current sentiment regarding the Australian economy is positive and the uncertainty surrounding the UK economy is still very much a negative in the eyes of investors.

The Australian economy has released a run of positive economic data and last night’s official Unemployment figure showed a fall from 5.9% to 5.7%. This is another reason the AUD has managed to break through 1.60 but despite the current positive trend I am still wary about assuming the current spike will continue at the same pace.

The UK is fighting an uphill Brexit battle and has done for many months but with Article 50 on the verge of being triggered and layers of uncertainty regarding future policies slowly being removed, the Pound may start to gain a foothold sooner rather than later.

We also need to remind ourselves that the current market remains unpredictable at best and with global investor confidence fragile, commodity based currencies such as the AUD are also at risk. They are reliant on global growth, in Australia’s case particularly the export of its raw materials to China. Therefore, any slowdown in this sector will always hit their economy hard and the AUD will inevitably suffer as a result.

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.

 

A volatile evening for Australian dollar exchange rates (Dayle Littlejohn)

For Australian dollar buyer and sellers this evening should be a volatile night for exchange rates for a few reasons. Firstly the Federal Reserve in the US are set to release their latest interest rate decision and many economists believe a rate hike is on the cards. If this occurs, I expect speculators to leave the Australian dollar and purchase US dollars in order to profit take. However if the FED decide to hold off expect the opposite and the Australian dollar could actually strengthen.

Later in the evening Australia are set to release a host of data including Unemployment rate, Employment change, RBA bulletin, Participation rate and Consumer inflation expectations. The two key releases are the Unemployment numbers and Employment change. With Unemployment expected to remain steady at 5.7% and Employment change numbers suggesting a slight rise, this could lead to the Australian dollar gaining strength. Therefore I wouldn’t be surprised to see Australian dollar exchange rates up and down like a yo-yo this evening.

As for GBPAUD exchange rates, I believe its only a matter of time until GBPAUD breaks through 1.60, therefore if a spike occurs this evening for Australian dollar buyers I would recommend seriously considering taking advantage. The reason why I believe rates will fall into the 1.50 is due to UK Prime Minster Theresa May’s announcement that she will trigger Article50 at some point this month.

For people that buy and sell Australian dollars on a regular basis or are looking to make a one off transfer, the currency company I work for can save you money. Feel free to send me the reason for why you are converting currency, the currency pair you are trading (AUDGBP, AUDUSD), and the timescales you are working to and I will send you my forecast and the process of using our brokerage drl@currencies.co.uk.

 

Will the Pound to Aussie Dollar rate fall below 1.60? (Joseph Wright)

A quick look at a GBP/AUD chart over the past 6 months will make it clear that the 1.60 level has acted as a key psychological level for some time now.

Since November of last year the GBP/AUD pair have bounced off of 1.60 around 4 times, and even in October of last year when the Pound came under huge pressure the rate only dipped into the 1.59’s for a short while before recovering back to levels above the key 1.60 mark.

Personally I think that a number of factors could reverse the direction of GBP/AUD, and I think 1.60 could remain a support level for the Pound with the pair likely to approach 1.70 once the Brexit is underway.

At present I think the markets are awaiting the certainty the invocation of Article 50 will give financial markets, which will in turn boost Sterling’s value. I’m also expecting to see the strongly performing Aussie Dollar lose some value should the US Fed Reserve Bank begin hiking interest rates as is planned in the US, as a higher yielding Dollar will likely limit demand for the high yielding Aussie Dollar.

Aussie Dollar sellers are in the fortunate position of being able to convert their currency into Pounds at around 3 year highs. Those planning on selling AUD for GBP are able to improve on their outcome even further as our currency brokerage offers exchange rates that improve on those offered by the high street banks, therefore our clients receive more Pounds for the Aussie Dollars through us.

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.

When will the UK trigger Article 50 and the impact for Sterling vs the Australian Dollar? (Tom Holian)

Overnight the news has broken that Parliament has approved the Brexit bill which now means that the UK government can officially trigger Article 50 and the UK can open negotiations to leave the European Union.

At some point today Royal Assent is also likely to be granted but he trigger is not expected to happen until later on this month.

The problem by triggering it at this moment is that the Dutch elections take place tomorrow and the Scottish National Party are due to hold a conference and the main point made by Nicola Sturgeon will be calling for a second Scottish referendum.

The problem of Scotland having another referendum is that we saw huge losses for Sterling against all major currencies in the run up to the vote and so I anticipate that we’ll see further problems ahead for the Pound vs the Australian Dollar and I wouldn’t be surprised to see GBPAUD rates fall below 1.60 on the Interbank level during the course of this week.

Scotland did not want to leave the European Union and will be active over the next few months trying to put obstacles in the way of the Brexit talks.

Sterling has fallen against all major currencies including against the Australian Dollar and it appears as though Article 50 will not take place until towards the end of this month as suggested by Brexit secretary David Davis.

In terms of economic data Chinese Industrial Production came out better than expected which has also given the Australian Dollar a boost vs the Pound.

Tomorrow the US Federal Reserve will announce its latest interest rate decision and the likelihood is that the US will hike rates and as this is almost guaranteed to happen it may not have the usual effect on the Australian Dollar which will often weaken the Aussie Dollar.

Currency markets tends to price in news so this time around I don’t expect any real negative movement for the Australian Dollar.

My prediction for the rest of the week is further strength for the Australian Dollar vs the Pound.

If you have a currency requirement to either buy or sell Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

US Interest Rate Hike could weaken the Australian Dollar (Daniel Johnson)

Could there be an Investor Exodus from the Australian Dollar?

The Australian Dollar has strengthened significantly against the pound of late. There has been positive figures from Australia coupled with the uncertainty surrounding Brexit. Data has been so good in fact, Australia has recently overtaken Holland for having the longest successive period of growth without recession. Wednesday could however be an opportunity for Sterling sellers.

Wednesday will see the Federal Reserve US interest rate decision. It has been widely publicised there is the strong possibility of a rate hike. Odds of a hike currently sit at 80%. If the hike occurs, the Australian Dollar will certainly lose appeal to the investor. With higher levels of safety and now higher returns than previously, the US dollar could well be the destination of choice. We could see significant Australian Dollar weakness following the rate decision.

Brexit Update

The House of Lords have put forward two amendments to the exit bill. They wish to have a vote by MP’s on the final bill and they would like the rights of current EU citizens residing in the UK protected.  The bill has to be approved by the House of Commons, however if the amendments are rejected, there is the possibility that article 50 could be triggered as early as midnight this evening. This would definitely be a shock to the markets and you could expect high volatility on the exchange.

Trading GBP/AUD?  – Be sure to be in touch with a Broker if you want the most for your money

If you have a currency requirement it is vital to have an experienced broker on board to assist with your trade. It will be extremely difficult to maximise your return during such volatile times. I can provide an individual trading strategy, picking the correct contract to suit your needs. I am also prepared to perform a comparison against your current provider and I very confident I will be able to show you a significant saving. Let me know the currency you are trading, the size of your trade and timescale and I will endeavour to get back to you as quickly as possible. You can trade in the knowledge that you will working with a brokerage in the business for over 16yrs and one that is FCA registered. I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you and thank you for reading.

 

 

Pound to Australian Dollar exchange rates could test the 1.6 mark (Joshua Privett)

After what was a short-lived improvement for Pound to Australian Dollar exchange rates, we are instead looking at a difficult time ahead on the exchange rates once more, with the key resistance level at 1.60 likely to be tested in the next few trading days.

Pound to Australian Dollar exchange rates had previously seemed untouched by the steady anxiety hitting the Pound this month, with Article 50 seemingly just around the corner.

With news coming out of Australia fairly hard to find at the moment, it was frankly surprising to see rates holding up so well.

This has been put down to speculative trading patterns.

Essentially, rates have been pushed down to 1.60 so often since the Brexit vote, without truly breaching it, that traders are unwilling to gamble on further gains. They buy Sterling to secure the gains, and this in turn balances out the rates of exchange by pushing up the Pound’s value through increased demand.

As I mentioned above, this is why it is termed a ‘resistance level’, normally something extreme needs to happen to break such established trends.

On Friday, Theresa May did her best to do just that. Her statement that Brexit could be triggered as early as next Tuesday was enough to push the Pound back to the 1.6 mark after beginning the day at 1.62.

 

It won’t be easy for Theresa May to deliver on this, she has a fight on her hands in the Commons as with the Lords. Exchange rates will continue to change based on this evolving debate. To stay up to date and avoid missing out on any opportunites, you can contact me directly.

 

As such, depending on your time-frame for a transfer, if you have a Pound to Australian Dollar exchange planned, or vice versa, 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 any rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Sterling vs Australian Dollar prediction for March (Tom Holian)

The Reserve Bank of Australia has recently decided to keep interest rates on hold as it appears as though the likelihood of any interest rate cut at any stage is minimal.

The Reserve Bank of Australia governor Philip Lowe has suggested that the global economy is improving and claimed that business and consumer confidence is on the rise.

Commodity prices have continued to remain very high which has boosted Australia’s income and the improvement has led to the strength of the Australian Dollar against the Pound.

GBPAUD exchange rates have struggled to break out of the range of 1.60-1.62 recently and it appears as though the Pound is struggling to make any real gains whilst we await what will happen once Article 50 is triggered.

When the Brexit vote was announced last June we saw a huge loss in value for the Pound against all major currencies and as a precedent has been set previously there is a risk that we could see problems for the Pound once the trigger has occurred.

However, on this occasion it is clear that Article will be triggered so there is also an argument that is has already been priced in.

On Tuesday we have further economic data from both Australia and China which could impact GBPAUD exchange rates. The most important data release of the two will come with Chinese Retail Sales & Industrial Production data. Any change compared to the expectation is likely to move the markets.

Whatever happens I expect there to be some volatility coming in the weeks ahead so in order to avoid the risk of the market moving against you it may be worth looking to at buying a forward contract which allows you to fix an exchange rate for a future date.

If you would like a further information or for a free quote when buying or selling Australian Dollars then contact me directly for a free quote. Having worked in the industry since 2003 for one of the UK’s leading currency brokers I am confident of also helping you with the timing.

Tom Holian teh@currencies.co.uk

 

Will GBPAUD slip below 1.60?

The pound to Australian dollar rate is on a lower trajectory as sterling comes under renewed pressure and Australian economic data continues to perform well. Most analysts feel sterling will move lower so I feel rates under 1.60 will soon once again be a very real possibility presenting even better opportunities for clients looking to sell AUD for the pound.

Most of the focus on the Australian dollar has centered around the likelihood of further interest rate cuts or hikes down under. With the Australian economy very close to breaking the record for the longest recession-free economy it ties in quite fairly that the currency would perform well. Despite the prospect and outside chance of further interest rate cuts down the line I think the currency will remain very strong. The Australian dollar enjoys lots of favour because of the high interest rates on offer, offering a much better proposition for clients looking to secure a good return.

With the UK about to trigger Article 50 the main focus of the markets will be on sterling which will be the big driver. Unfortunately for Australian dollar buyers waiting around to pick up patchy pockets of Australian dollar weakness is unlikely to do anything material to them to help avoid the harsh reality of a much weaker pound following Article 50 being triggered.

Next week is Unemployment data for Australia which if worse than expected could present some slightly better opportunities for greedy Aussie dollar buyers who missed the boat earlier this year. But with some major political changes under way in the UK a move below 1.60 seems the great chance for short term movements on this ever uncertain pair.

For more information at no cost or obligation please speak to me Jonathan on jmw@currencies.co.uk. I work as a specialist currency broker and can help you with the planning and execution of any transfers you will need to consider for the future.

Where Next for GBP/AUD Exchange Rates? (Matthew Vassallo)

GBP/AUD rates have remained fairly flat during Thursday’s trading, with the pair floating around 1.62.

The AUD has performed well this week against Sterling ,as pressure continues to build on Sterling ahead of the UK’s upcoming Brexit and the triggering of Article 50 later this month.

Much of this week’s focus has been on yesterday’s UK budget and as expected the new Chancellor was bullish in his address.

Despite the outcome being underwhelming for those clients holding the Pound, there were positive noises being made regarding future growth forecasts for 2017, which were raised form 1.4% to 2%.

There is also on-going talk of a Brexit ‘pot’ being put aside to help alleviate pressure on the UK economy, following the triggering of Article 50. This is still on course to be actioned this month, despite some speed bumps being put down by the House of Lords. Whilst there was talk of up to 60bn being put aside as a safety net no official figures have been confirmed and as such it will be interesting to note how this story develops as it could have a significant impact on Sterling’s value.

As it stands the Pound is still struggling to make any significant inroads against the AUD, which is still threatening to make a move towards 1.60. This level will be hard to breach and is likely to provide some resistance for Sterling but there is no doubt the UK economy remains fragile in investors’ minds and the AUD is benefiting as a result.

The current market remains unpredictable at best and with global investor confidence fragile, commodity based currencies such as the AUD are always at risk. This always leaves them open to risk as they are reliant on global growth, in Australia’s case particularly the export of their raw materials to China. Therefore any slowdown in this sector will always hit their economy hard and the AUD will inevitably suffer as a result.

For this reason I have been advocating that my clients look for short-term spikes rather than hold out for sustainable gains in such uncertain and volatile times.

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.

Australian Dollar Supported ahead of US Nonfarm Payrolls (James Lovick)

The Australian dollar could be in for an interesting end to the week with US Nonfarm payroll numbers released on Friday. The Australian dollar is heavily impacted by events in the US at the moment as there is growing pressure on the US Fed to raise interest rates, something that in turn impacts on the Australian dollar. There is a 95% chance that the US Feed will hike next Wednesday which could start to see the Australian dollar weaken as funds return to the US where a greater return can be found due to the higher interest rates.

Construction numbers in Australia have performed well and are yet another piece of data that suggests the Australian economy is ticking over nicely. Data from the Australian Industry Group reported that the construction sector actually grew in March having contracted one month earlier whilst the housing market is also performing well.

The UK budget yesterday had little impact on GBP AUD although next week’s political developments with the Brexit bill being debated between the House of Commons and Lords could see considerable volatility. There is a chance that Article 50 could be invoked as soon as next week and with this carries the potential for major volatility for pound dollar rates. The government are likely to announce this on a very large platform for all eyes to see and make a big deal out it. From a global perspective it does suggest there could be considerable market reaction.

Those clients looking to buy Australian dollars could be in for a hugely volatile period and would be wise to consider their options before the major event. On the one hand the pound could see gains as clarity over Brexit is finally offered although the opposite could be said in that the move will be permanent and it means Britain will definitely leave the European Union.

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