Tag Archives: aud exchange rates

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. 

Will pressure on Sterling result in further falls for GBP/AUD, even if the RBA doesn’t want a stronger Aussie Dollar? (Joseph Wright)

There has been a lot of talk recently from both economists as well as the Reserve Bank of Australia that the Aussie Dollar is an overvalued currency.

Of all the major currencies the Aussie Dollar is the 4th best performer so far in 2017, and whilst this sounds like a positive thing to many the reality is an overvalued currency isn’t great news for export driven currencies due to the fact that it makes purchasing goods from Aussie more expensive, and therefore negatively impacts the economy.

The issue the RBA have is that cutting interest rates again in order to stem demand for the currency isn’t easy, as the likely market reaction within the property market would be negative. This is why I don’t think there will be a rate cut, as the property market is already overheating and if they make mortgages even more affordable that problem could spiral, especially in the East-cost of the country where property prices are already very high and unaffordable in many cases.

The Pound is coming under increasing pressure due to the Bank of England’s decision not to raise interest rates, and also just yesterday it emerged that the BoE’s forecast for the UK economy in 2017 isn’t going to grow at the rate they had previously expected.

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.

 

Sterling climbs against the Aussie Dollar as the RBA warns of strong currency putting pressure on Australian economy (Joseph Wright)

The Pound to Aussie Dollar exchange rate hit 1.66 in the early hours of this morning, and this was the first time in over 2-weeks that we’ve seen the Pound trade this high.

The headline comments from the Reserve Bank of Australia in the early hours came in the form of a warning, saying that the ‘Aussie’s recent strength has been placing pressure on the Australian economy’ and this resulted in the selling off of AUD.

The RBA appears to be fairly neutral in its outlook for future growth after suggesting that forecasts for the Australian economy remain unchanged (currently at 3% annually).

The fall for the Aussie dollar came after data showed that sentiment within the Manufacturing sector strengthened, along with the positive move of 7% increase in the value of Iron Ore which has given AUD a boost.

It appears that the RBA would prefer a weaker Aussie Dollar and I think that those planning on converting Aussie Dollars into Pounds should consider the gains they’ve seen recently, and whether they think the Aussie can continue to strengthen at its current rate.

This Thursday is likely to be a busy day for Sterling exchange rates as a whole and I expect to see the GBP/AUD rate see volatility. Thursday is being billed as ‘Super Thursday’ and if you would like to discuss why in future detail do feel free to get in touch.

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 remains strong, but Aussie Dollar sellers should be wary of the RBA’s attempts to weaken it! (Joseph Wright)

In the last month alone the Aussie Dollar has gained an impressive 4% against the US Dollar, and the currency has also manged to find itself trading at the top end of it’s post-Brexit levels against the Pound.

It has also become clear that the Reserve Bank of Australia is skeptical to make amendments to the current interest rate through fear of affecting the housing market. Property prices are overheating down under, especially in the east-coast and a change could create a dramatic impact so I believe there won’t be a change for a while.

The Pound has been underperforming recently which has accentuated the losses for the GBP to AUD rate, and although I think there’s a chance we could see the RBA attempt to talk down the Aussie Dollar and economy in order to keep the currency from becoming even more overvalued, I would rule out a move back down the lowest levels since the Brexit vote of 1.59.

If you are planning on exchanging Aussie Dollars into Pounds and think the rate could become even further favourable, it may be worth looking into setting up a Limit Order in order to try and trade at a higher rate should it become available. I’ll be happy to discuss this in further detail should you wish to.

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 Australian Dollar improves despite IMF downgrade, is this a sign that the Pound is oversold? (Joseph Wright)

I wrote last week about how some analysts as well as members of the Reserve Bank of Australia are becoming concerned that the Aussie Dollar is becoming overvalued and higher than it perhaps should be, and I believe we will continue to hear similar commentary in the upcoming months.

Earlier in the year the Pound to Aussie rate hit the mid 1.70’s whereas the pair are now trading closer to 1.50 than 1.60. Since the Brexit the lowest the pair have fallen to is to a mid-market level of 1.59 so i don’t think we can rule out another move to these low levels as we don’t require the GBP/AUD pair to do something they haven’t in recent history.

In the early hours of this morning the Pound started off on the back foot after the International Monetary Fund (IMF) downgraded both the UK and the US growth forecasts for the rest of this year.

Throughout the day though the Pound has climbed, not just against the Aussie but across the board as the Pound as gained against all major currency pairs today.

Despite this boost I think that we could see the Pound trade at lower levels, especially if the UK inflation rate continues to under-perform and the likelihood of a rate hike from the Bank of England continues to dwindle.

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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Reserve Bank of Australia appear unhappy with ‘overvalued’ Australian Dollar, will they take action? (Joseph Wright)

The Aussie Dollar has not only gained a substantial amount of value against the Pound in recent months, but also against most other major currency pairs.

With the Reserve Bank of Australia (RBA) already suggesting that there will be no further interest rate changes this year, they now have the issue of an overvalued currency which is a negative for an economy like Australia’s due to it being so heavily export driven.

The reason the RBA is unlikely to amend the interest rate is due to fears of a heavy impact on the already overheating housing market, as making mortgages easier to come by would most likely cause even further issues for house prices down under and especially on the East coast.

The Australian Dollar is now this year’s best-performing major currency so those looking to exchange AUD into another currency should bear this in mind.

Moving forward I think there’s a chance that we could see members of the RBA attempt to jawbone the currency as they will be looking to keep Aussie exports competitive.

The Pound is coming under pressure as Brexit negotiations take place this week in Brussels, and I think there is always the chance of a update on these which could move the markets.

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 (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Will GBPAUD rise back above 1.70??

The expectation for GBPAUD exchange rate is rather mixed with the pound really struggling to make much headway following a tough week. Tuesday saw GBPAUD drop as members of the Bank of England confirmed they will not be so positive about raising interest rates. The overall belief the pound would rise if the Bank of England raise interest rates has been supporting the pound but this is now looking less likely. The Australian dollar has also been benefiting and rising because the US Federal Reserve have been slightly move dovish (soft) in their approach towards raising interest rates.

If you are buying Australian dollars with pounds there is a belief we could see 1.70 but I think it is more likely the GBPAUD rate will actually drift lower. This is because there are so many negative factors surrounding the pound and I believe market conditions are much more supportive for the Australian dollar to rise. This largely stems from the fact the Australian dollar is a commodity currency and will appreciate in value when investors seek a higher return.

If you need to buy Australian dollars with pounds the short term forecast is not looking so good. Trading conditions seem to favour sterling slipping, I mean just what would actually lead to the pound rising? Uncertainty over the Brexit and the UK economy indicates to me the pound will remain on the back foot. I also believe the Australian dollar will retain much of its strength in this current climate.

If you have a transfer to make then getting all the information available and tracking the latest trends is key to helping maximise your transfer. A 1 cent improvement on a £200,000 transfer buying Australian dollars could achieve you an extra 2000 Australian dollars!

For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk. We are expecting some really interesting movements on the GBPAUD rates, of course it won’t be just downward, there will be spikes to take advantage but you need to be prepared! This is what we can help you to monitor and achieve.

Thank you for reading and I look forward to hearing from you.

 

 

Disappointing data this week results in the Pound weakening, is the UK economy slowing down? (Joseph Wright)

Throughout the week there has been a series of disappointing data releases out of the UK, along with data this morning from Halifax confirming that property prices within the UK have fallen by 1% with UK house price growth falling to a four-year low.

We found out earlier this morning that manufacturing production within the UK fell last month from the month before, whilst industrial production has also fallen on an annual basis.

The construction sector has also experienced a slowdown recently, and with the raft of bad data released this week it may leave many within the marketplace re-evaluating whether there is much of a chance of an interest rate hike this year.

Unicredit (a major Italian lender) this week forecasted a potential spike of up to 4% if there is a rate hike this year, although personally I cannot see this happening irrespective of the UK’s inflation levels and I think that the Pound to Aussie Dollar exchange rate is more likely to fall between now and the end of the year.

There is talk of a slowdown in the Aussie economy also, but with the UK entering such a crucial time with Brexit negotiations I cannot see Australia’s issues overpowering those of the UK.

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.

How the Bank of England and Reserve Bank of Australia could impact GBPAUD exchange rates (Dayle Littlejohn)

For people that are reading this website for the first time as they need to purchase a substantial amount of Australian dollars for a business related matter or a property purchase it’s is important to understand that interest rates have a major impact on the currencies value.

Earlier this week the Reserve Bank of Australia’s minutes confirmed the RBA are unlikely to hike rates anytime soon. This was a surprise as the Governor of the RBA gave a hawkish press conference last week and many economists had been speculating that Australia could follow in the US footsteps.

It was important to note the RBA did confirm it is unlikely rates would be cut further as, more liquidity in the housing market would have a detrimental impact on the Australian dollar longer term.

The message the RBA gave earlier this week is slightly different to the Bank of England’s. Inflation levels have risen above the BoE 2% target and members of the Bank of England are now calling for an interest rate hike. Nothing has been confirmed however speculation is rising and a hike looks likely towards the end of the year or early 2018.

Therefore looking ahead the pound could trend higher against the Australian dollar if we only looked at interest rates, however there are many factors that influence exchange rates. For example Brexit negotiations are on going and if these negotiations grind to a halt which I think is likely we could see substantial falls in the pounds value.

When converting GBPAUD exchange rates it is important to understand political events are having more of an impact than economic data therefore it is very difficult to predict the future. My job is to outline the options to clients with the potential upcoming economic events, and the client makes the decision of when to convert.

If you are buying or selling Australian dollars and would like to know your options and have access to fantastic exchange rates feel free to email me on

If you are trading GBPAUD in the upcoming weeks, months or years and want to know your options whilst saving 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! **

 

Pound to Aussie Dollar range-bound, but where to next? (Joseph Wright)

The Pound to Aussie Dollar exchange rate has been trading between 1.66 and 1.68 for a few days now, as the pair appear to have consolidated below 1.70 in the wake of the disappointing election outcome for Sterling bulls.

As of yet there is no official agreement between the Conservatives and the Democratic Unionist Party (DUP) although speculation is mounting as to the amount the Conservatives will have to pay for the coalition, with some speculating amounts of up to £2bn.

Moving forward I’m expecting any news of the coalition to have a potential impact on the Pound to Aussie Dollar buying rate, which is where keeping in touch with us can really help as we’re able to act whenever there’s a big short term move.

Brexit negotiations are now also underway, which is another issue for the government to deal with along with the ongoing Grenfell Tower tragedy and the recent terrorist issues.

On the other hand the Aussie Dollar has been under pressure in recent weeks as the Chinese economy appears to be slowing, which is a negative for the value of AUD as the Australian and Chinese economies are key trading partners.

With both currencies coming pressure for different reasons, it could be that the weaker of the two that results in further price movement for the GBP/AUD pair.

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.