Tag Archives: aud exchange rates

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.

 

Pound to Aussie Dollar exchange rate falls again, will the downward trend for the Pound continue? (Joseph Wright)

The Pound to Aussie Dollar buying rate dropped again throughout today’s trading session, with the exchange rate dropping by 0.65% throughout the day up until the time of writing.

Not only are the financial markets and investors concerned about the political situation in the UK, with the outcome of the election being one of the worse case scenarios for the UK as it resulted in a Hung Parliament, but the rising rate of Inflation and lower wage growth becoming an issue that could rise to the surface very quickly.

If the rate of inflation continues to climb but the rate of wage growth continues to decline (as figures released today showed it happening for the 3rd month in a row), I think the Pound could find itself trading at a much lower rate than we’re currently witnessing.

My reasoning behind this is because the UK consumer has been propping up the UK economy since the Brexit, which has allowed the ship to steady to an extent after all the warnings from market analysts should the UK pubic have voted to leave the EU.

Should the current trend of higher costs of living in the UK continue I think the Pound may fall as I previously mentioned, and if you would like to be kept updated regarding this matter as well as any others that can potential impact GBP to AUD exchange rates, do feel free to get in touch with me.

There’s a plethora of data due out tomorrow for the UK specifically, so feel free to contact me overnight to discuss these events and how they could impact any short term currency exchange plans you may have.

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.

US Interest Rate decision key for GBPAUD currency exchanges!

The Federal Reserve bank in the United States will unleash their latest Interest Rate decision  tomorrow evening at 7pm UK time. The pound to Australian dollar exchange rate is looking precarious as we approach this latest news, but also news from the Bank of England this week. Overall I would not be surprised to see the Australian dollar weaker as the market finds that betting on the US dollar’s ascendancy is much more interesting than backing the Australian dollar.

The Australian dollar is holding one of the higher interest rates of the leading global economies at 1.5%, with a hike in the US bringing them to just 0.25% below, the expectation is that the Australian dollar will be sold off as investors adjust their positions to reflect more of a holding of the US dollar, believing the US dollar will rise further in the future.

If you have a transfer buying Australian dollars in the future Thursday might see some better rates but should the Fed decide to hold off raising rates, we could see the US dollar weaken which would see the Aussie gain strength. The Aussie could also find favour against a weaker pound which is having a very tough week following the unexpected outcome from the UK election.

Should you be considering buying or selling Australian dollars in the future current evens are very important, Aussie buyers will I am sure be very keen to try and get above the magic 1.70 mark again although of course they could easily find themselves getting worse should events take an unexpected turn as they can!

For 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!

Pound to Aussie Dollar hits its lowest level since April as the election approaches, will the trend continue? (Joseph Wright)

The Aussie Dollar bucked the trend today and actually gained value vs the Pound during today’s trading session.

As the election polls have swung back in favour of a Conservative majority the Pound has received a boost against most currencies, as the tightening in the polls over the past few weeks has put pressure upon the Pound as is often the case during times of political uncertainty.

The Aussie Dollar managed to buck the trend as in the early hours of this morning as both quarter-on-quarter as well as year-on-year economic growth figures (GDP) came out better than expected. This data release now means that Australia has recorded 103 successive quarters of growth which is a new global record, making the Aussie Dollar strength understandable.

Despite these figures from down under I am expecting to see the Pound climb further across the board of major currency pairs (including AUD) should the Conservative party win a majority when the election result is announced this Friday.

Another potential downside to the Aussie Dollar is the likelihood of another interest rate hike in the US which would limit demand for investors to hold funds in AUD. AUD has benefited from having such a high interest rate for a nation within the developed world, and should other nations, especially those considered less high risk such as the US, begin offering a similar or higher rate we could see a sell-off in the Aussies value due to selling pressures.

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 will GBPAUD react to the UK election?

How will the pound perform against the GBPAUD rate is a valid question given the UK election on Thursday which has real potential to move sterling sharply higher or lower. The pound is looking more and more at risk of some big movements as the uncertainty around the actual outcome persists further. The general belief is that Theresa May could win the election with a decent majority but if she fails to sterling could drop, GBPAUD could rise as high as 1.80 or fall back into the 1.60’s. If you have a transfer to make then

Whereas before the UK Referendum last year there was a 1 to 8 chance of a Leave vote winning, now the hung parliament is at odds of 1 to 3 and a Jeremy Corbyn win is at 1 to 5 odds! The general belief is as I say a UK election victory for Theresa May but whereas the previous belief was a strong majority, now we are looking at less chance of the ‘landslide’ that was predicted. If you have a transfer to make then understanding the market and potential movements in the future is key to getting the better deals.

The Australian dollar has been a little stronger on the back of the news of the latest Reserve Bank of Australia news that indicated interest rates could be rising soon in the future possibly to as much as 3% over the next few years. Such a positive outlook helped the Aussie to claw back some ground against the weaker pound and depending on the outcome of the election we could see the rate below 1.70. A strong Theresa May win could however easily push this into the high 1.70’s and even over 1.80.

If you have a transfer to consider and wish to learn more about the market and all of your options then please get in touch. We can help with the planning and execution of any exchange. A limit order is perfect in this kind of market as it guarantees your rate if it is suddenly hit during a period of unexpected movement.

For more information please contact me Jonathan Watson on jmw@currencies.co.uk to discuss how we can help maximise your exchange rate.

Pound to Aussie Dollar rate consolidates above 1.70, will the Pound manage to hit 1.80 this year? (Joseph Wright)

The price movement between the Pound and the Aussie has been interesting today, and may offer those planning a currency conversion between the pair with a indication of what to expect in future.

Sterling exchange rates came under pressure across the board during today’s trading session as late last night a YouGov poll suggested that Theresa May’s (the current UK prime Minister) Conservative Party may lose its majority in the upcoming election, and this political uncertainty is weighing on the Pounds value as is often the case.

Interestingly the currency didn’t come under pressure against the Aussie Dollar, as the currency appears to be under pressure at the moment which leads me to believe that if the gap between the Labour Party and the Conservative Party in the UK widens, we can expect to see the Pound make up ground on the Aussie Dollar and maybe even breach the 8-month high of 1.7635 it hit recently and trade towards 1.80.

The Aussie Dollar has come under pressure since China was downgraded by Moody’s earlier this month, as the Chinese economy appears to be slowing which isn’t a positive sign for the Australian economy due to the two countries close trading ties.

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 the issues surrounding the Australian property market weaken AUD further? (Joseph Wright)

The Pound to Australian Dollar exchange rate hit 1.7430 at it’s highest point during today’s session, although at the time of writing the Pound appears to have lost all of today’s earlier gains.

It’s difficult to tell which way the rate will move next, although I think that it will be underlying weakness that results in the next big move for the GBP/AUD pair as both currencies are coming under pressure for differing reasons.

China was downgraded by Moody’s (a credit rating agency) for the first time in 30 years due to slowing growth in the region although markets haven’t overreacted as a slowing in growth was inevitable.

This could spell bad news for the Aussie Dollar moving forward due to the interconnected economies (Australia and China) being quite reliant on each other. At the same time further talk of the property markets in Sydney and Melbourne overheating are surfacing again, and with a slowdown in the construction sector down under becoming a talking point as well I think there could be issues for AUD later down the line.

The Pound has also come under pressure due to the terrorist attack earlier this week, and with the election just around the corner we could see further headwinds for the Pound as we get closer to the election date (the 8th of June).

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 falls due to China’s credit rating (Dayle Littlejohn)

This morning China’s credit rating has been cut by Moody’s by one level to A1. A1 is the fifth highest credit rating by the well established Moody’s, and indicated that the country can meet debt requirements however are susceptible to change due to economic changes.  The reason why China have been cut is that debt levels are continuing to rise and will continue to rise in a bid to keep the economy growing. Moody’s stated “Rising Debt will erode China’s credit metrics, with robust growth increasingly reliant on policy stimulus.”

The slowdown in China is having a direct impact on Australia’s largest export Iron Ore. Fortescue, on of the largest producers of Iron ore have warned that Iron prices could continue to fall in the upcoming months. Since February Iron ore has dropped from $95 dollars per tonne to $60 dollars. With this in mind I wouldn’t be surprised to see the Australian dollar lose value in the upcoming months. Good news for Aussie buyers bad news for Aussie sellers.

However when buying or selling Australian dollars it is always important to analyse the other currency you will be converting. If you are a regular reader you will know that the brokerage I work for is based in the UK and therefore I write many articles including the pound. In regards to GBPAUD exchange rates the pound is under pressure due to the upcoming UK General Election and Brexit negotiations however I wouldn’t be surprised to see a slight rise in the upcoming weeks.

The problem I have longer term for Australian dollar buyers that will be using sterling is that any point I believe Brexit negotiations could stall due to the €100bn divorce settlement. If this occurs I expect exchange rates to fall back to the levels we become accustom to over the last 6 months (1.60).

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

Pound to Aussie Dollar rate continues to fall over UK economic outlook concerns, will the downward trend continue? (Joseph Wright)

The Pound to Aussie Dollar exchange rate fell into the 1.73’s earlier today as the downward pressure upon the Pound continued.

Despite still trading in the 1.70’s the GBP/AUD pair has fallen from its 8-month high as the currency is falling against all major currency pairs, with the drop against some currencies being steeper than others with GBP/EUR’s fall down to a 5-week low bring one of the standout movers.

The main reason for the softening to Sterling’s value can be attributed to the Inflation rate within the UK and its knock on effects.

The rate of Inflation has risen to its highest level since September 2013 and this is significant as it’s come at a time when UK wage growth is stagnating. Inflation is growing at a higher rate than wage growth which is likely to negatively impact consumer spending within the UK, which is an important aspect of the UK economy.

This situation looks gloomy for the Pound moving forward as the Bank of England has ruled out a rate hike in the short term future, especially with a general election just around the corner.

I wouldn’t be surprised to see the GBP/AUD rate dip below 1.70 in the short term future, unless there’s a reversal in the steep rise of living costs within 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.

Inflation a worry for Sterling (Daniel Johnson)

Snap Election causes pound strength

We have seen Sterling make considerable gains against the Australian Dollar of late. One of the main catalysts was Theresa May’s announcement that an election is to be held on 8th June. Historically a snap election has weakened the currency in  question, however on this occasion the opposite occurred. It was a shrewd move from the PM to call for an election while the opposition is so weak. The conservatives are some distance in front in the polls and are highly likely to win the election. A conservative victory is considered to be the safe bet for the UK economy, this caused a boost in investor confidence and in turn the pound. The market moves on rumour as well as fact and I am of the opinion a conservative victory is already factored into current GBP/AUD levels.

Iron Ore price causes Australian Dollar to fall in value

Another cause for the fall in Australian Dollar value is the drop in price of Iron ore. Iron ore is Australia’s largest raw material export. The price in iron ore has fallen considerably and is having a significant effect on the value of the Australian Dollar. Australia are heavily dependent on the Chinese and Chinese growth is dwindling, which is hurting the Aussie. Keep a close eye on Iron ore prices if you have a requirement involving the Australian Dollar as this could have significant bearing on your return.

Inflation a big concern for the pound

Yesterday, we saw inflation data released in the UK. There has been a rise in inflation, usually this would be deemed as positive for the economy but in this instance it is worrying. The rise in inflation is caused by the weak value of the pound. Retailers are paying more for their imported products and are now shifting the increase in price on to consumers. Wage growth is not keeping up with inflation so this could warrant consumers to stop spending. I stated this could be a problem in blogs months earlier, keep an eye on inflation levels moving forward as this could be a major stumbling block for the pound.

If you have a currency transfer to carry out in the coming days, weeks or months then you are welcome to speak to me directly. 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  come to buy your currency. A minor improvement in a rate of exchange can make a considerable difference so for the sake of taking two minutes to email me you may save yourself hundreds if not thousands of Pounds. I can be contacted at dcj@currencies.co.uk. Thank you for reading.