Tag Archives: aud exchange rates

Busy day for GBP/AUD exchange rate, can we expect to see similar volatility moving forward? (Joseph Wright)

The Pound has been trading in a volatile fashion today as a number of headlines have resulted in Sterling movement.

Although there is no major data set for release out of the UK this week, and there was little released today by the way, I wouldn’t be surprised to see the Pound move further as Brexit talks appear to be heating up.

This afternoon we saw the Pound sold off as it appeared that Brexit Secretary David Davis has a different opinion to his European counterparts regarding how Brexit negotiations are going. The International Monetary Fund’s Managing Director, Christine Lagarde today also threw her hat into the mix and stated that there needs to be more clarity regarding the Brexit, and that a ‘No Deal’ Brexit is unimaginable.

The downward trend has since reversed for the Pound as in the last 30 minutes or so its been reported that Michel Barnier, the European Chief Negotiator for Brexit has stated that the EU could offer the UK a 2-year transition stay in the EU market after Brexit.

In a market like this its very difficult to judge which way the market will move, but working on a trading floor means that we’re able to react quickly to the sudden moves.

Today’s price movement has been over 1.25% which on large currency transfers can equate to a substantial amount of money, which is where timing your transfers can really make the difference.

There are no major announcements out of Australia either this week, so I expect the pair to continue to be driven by sentiment with today’s trading session being a clear example of how comments from significant personnel can move the markets.

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.

Australian Dollar recovers against the Pound (Daniel Johnson)

Australia’s worst retail sales data in four years

Early in the week we saw some quite poor economic data from down under. Retail sales data which was predicted to come in at a 0.3% up, it actually dropped by 0.6% and the pound benefitted as a result. This was the worst retail sales data for four years. It seems consumers have made cuts due high levels of personal debt in goods such as furniture, clothing and food.

Interest rates were kept on hold at 1.5% due to high debt levels, poor inflation and a slow down in wage growth. Despite this I am still of the opinion the UK economy is in a much worse position due to the uncertainty surrounding Brexit and a lack of political stability.

May fails to unite the Conservatives

Sterling’s rally quickly ended following the debacle which was Theresa May’s speech.¬† Her aim was to unite the party and bring stability to the conservatives. I think it was close to the opposite.
She coughed throughout¬† the speech and party posters fell on the floor to add insult to injury. A member of the public managed to breach security and hand her a P45 which had a fake Boris Johnson signature inscribed. In house bickering and the uncertainty of May’s job is not helping the pound. Political uncertainty will almost certainly impact the currency in question. A client of mine said it was so bad it seemed as though it was a sketch from Yes! Prime minister.

The bookmaker Betway have slashed odds to 5/6 that May will no longer be in power by the next general election.

On the Aussie front we could see further gains due to increased demand for Australia’s biggest export Iron ore. I am of the opinion Sterling is in a bad spot and we could see further losses short to medium term.

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.

 

Bad news for the Pound pushes it lower, are trade levels in the early 1.60’s on the horizon again? (Joseph Wright)

Despite some negative data being released down under in the early hours this morning, the Pound has still dropped against AUD throughout the day’s trading.

The worst Retail Sales figures in 4 and a half years were published this morning, as it turns out that Australian consumers are beginning to cut back on items such as food, clothing and furniture.

The reading for July was also revised down from the previous reading, meaning that the two drops in sales figures are the biggest back to back drop since 2010.

Despite this this disappointing data release the Pound has still fallen against the Aussie Dollar, whereas the majority of other major currency pairs have risen against the Aussie.

Sentiment surrounding the Pound took a knock today as ratings agency, Standard & Poors questioned whether the UK could withstand an interest rate rise, and it emerged that car sales in the UK are continuing to drop.

There has also been a lot of talk regarding UK Prime Minister, Theresa May’s calamitous speech to the Conservative party conference on Wednesday.

Odd’s are increasing on her resignation and although I don’t expect any changes at number 10, I think any talk surrounding this matter could result in a weaker Pound which could push the GBP/AUD pair down towards the 1.60 mark.

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.

Is the Aussie Dollars bullish run coming to an end? (Joseph Wright)

The Pound is continuing its recovery against the Aussie Dollar, with the rate rising above the 1.70 mark once again and this time almost hitting 1.72 at its highest point during today’s trading session.

I believe this change in direction for the pair can be put down to both Sterling strength as the pound is also putting in some strong performance against other major currency pairs. This is likely due to Brexit headlines and uncertainties not being in the spotlight which has been a welcome change for those hoping to exchange their Pounds at more competitive levels.

The upward movement for GBP/AUD has also been aided by the weakening Aussie Dollar which had previously been one of the strongest performers of the year.

The drop in the Aussie dollars value can be put down to a slowdown in Chinese growth, falling commodity prices such a iron ore which is key for AUD, and also talk of the Reserve Bank of Australia not planning on hiking interest rates until 2019 which is in start contrast to the Bank of England who have alluded to hike as soon as next month.

Tomorrow morning there will be a key data release out of the UK as UK GDP will be released around 9.30am. If this figure deviates from the expectation we could see further movement, so feel free to get in touch with me if you wish to be kept updated regarding this release.

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.

Pound to Aussie Dollar rate hits an 8-week high after Bank of England hints at a rate hike, will this upward trend continue? (Joseph Wright)

The Pound rose sharply today against all major currency pairs after comments from the governor of the Bank of England buoyed the markets.

Up until lunchtime today it had appeared that the Bank of England hadn’t planned on hiking interest rates in the UK until 2019, but that changed this afternoon after a number of comments from Mark Carney (the governor of the Bank of England) hit the financial headlines.

After a higher than expected inflation figure earlier this week, the Pound had climbed slightly on hopes that the BoE would act sooner, and today those hopes materialised which is why we’re seeing the Pound climb so steeply.

Generally speaking, an interest rate hike is considered a positive for the underlying currency in question, hence the sharp rise as the markets mere mostly shocked.

Carney stated that the possibility of a rate hike has increased, and that rates may need to be adjusted in the coming months. He also stated that that he was among the majority of the Monetary Policy Committee members that believe some withdrawal of monetary stimulus will be needed in the coming months.

With comments such as these I expect to see the Pound continue to climb from its current levels, especially if they continue and the rate hikes are carried out.

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.

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.

 

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.

Will Brexit uncertainties limit a Pound to Aussie Dollar recovery? (Joseph Wright)

The Pound to Aussie Dollar exchange rate is currently trading at the top end of its post-brexit vote lows at the moment, with it’s multi-month low sitting at 1.6171.

It has traded in the late 1.50’s since the vote so now is an important time as we’ll see whether the pair will fall below this mark and hit new brexit lows as the Euro has over the past week.

Under normal circumstances I would expect to see future Sterling gains against the Aussie Dollar due to the overheating housing market concerns, as well as the RBA’s reluctance to amend interest rates to counter this but due to fears surrounding the UK economy in future, I’m not expecting to see the Pound recover back to levels of 1.70 – 1.76 that we saw earlier this year.

Many current financial headlines are centered around the Brexit negotiations and how the European Commission is becoming frustrated with the UK’s lack of clarity regarding the exit strategy, with the UK not willing to show its hand until the Brexit Bill is confirmed.

If you would like to be kept updated regarding any short-term price movements involving the Pound and the Aussie Dollar, do feel free to get in touch with me and register your interest, as we’re able to keep clients informed.

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.

 

Will Brexit uncertainty continue to push GBP/AUD lower, and will we see trade levels below 1.60 again this year? (Joseph Wright)

Economists appear to be concerned by the almost daily dropping of the Pound, as uncertainty surrounding the terms of the Brexit deal are putting alot of pressure on the Pounds value.

Many are predicting that the pound will be trading lower into 2018 than current levels, and although this blog is focused predominantly on the GBP/AUD exchange rate I think it’s useful for our readers to know that many major institutions are predicting that the Pound will fall below parity against the Euro for the first time in 2018.

Interestingly earlier this week the National Australian Bank predicted that the Australian Dollar will actually lose value against the Pound between now and the end of the year, although only marginally.

This prediction appears to buck the trend of general negative outlooks surrounding the pound as concerns over the UK economy as we enter Brexit are generally outweighing other factors.

This weekend there could be movement for the Pound to Aussie Dollar exchange rate as a number of key financial figures such as US Fed Chairlady Janet Yellen and European Central Bank president Mario Draghi will be speaking Jackson Hole central banking conference. This will be happening out of hours so expect any major announcements to impact the rates perhaps late tonight or when markets open next week.

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.

Will GBP/AUD return to its March lows and trade in the 1.50’s once again? (Joseph Wright)

Unfortunately for those planning on exchanging Pounds into Australian Dollars in the short term future, the Pound appears to be on track to return to it’s post-Brexit vote lows.

It was back in March when GBP/AUD broke below 1.60 before recovering. The Pound is coming under pressure against most major currency pairs at the moment with just a few exceptions such as the Swiss Franc.

For those with a need to exchange the Pound into Aussie Dollars its worth noting that the Pound hit fresh lows against the Euro during today’s trading session, so if the Pound to Aussie Dollar rate is to follow suite the pair have another 5 or so cents before that happens.

At 11am tomorrow there could be movement between the GBP/AUD pair as an Inflation Report Hearing in the UK will take place, and due to the inflation levels in the UK currently under the microscope due to the fall in the value of the Pound I expect investors to listen closely for hints at future monetary policy in the UK. I wouldn’t completely rule out an interest rate hike this year if need be and talk of one could provide the Pound with a much needed boost.

On Thursday afternoon there will be a GDP estimate figure for the past 3-months to July, and this release comes after a bout of data on Instruction and Manufacturing which could also impact Sterling/Aussie exchange rates should the outcomes deviate greatly from expectations.

If you have an upcoming currency requirement involving the Pound and Aussie Dollar, do feel free to get in touch as I’ll be happy to discuss our commercial exchange rates with you, along with my opinion on potential future price fluctuations. You can email me an outline of your plans to jxw@currencies.co.uk or even provide with a telephone number if you wish to discuss it as soon as possible.¬†