Tag Archives: AUD strength

Will the Pound to Aussie Dollar rate break out of its current trend? (Joseph Wright)

The Pound to Australian Dollar buying rate is continuing to hover around the 1.73 mark at the mid-market level.

Whilst there have been some short term moves away from this level the pairs movements have been relatively tame for the last few weeks, which is quite a change considering how the pair has moved over the past couple of years.

Since the Brexit vote and the fall in the Pounds value due to the shock of the referendum outcome, the pair have remained range-bound between 1.5950 and 1.7950. With the pair currently trading quite comfortably above 1.70 I think it’s fair to say that the Pound is closer to the top end of its 18-month trend as opposed to the bottom, and those planning on converting Pounds into Aussie Dollars should consider this.

Sentiment surround the Australian economy has been buoyed today after Australian Consumer Confidence figures came out better than expected in the early hours of this morning.

This is the best level since the end of 2013 and if economic data releases and gauges down under continue to impress we could see the Aussie strengthen and push the GBP/AUD rate back below 1.70.

If you’re following the pair and would like to be kept updated should there be a big move for the pair, do feel free to register your interest with me.

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 slightly as political reshuffle springs no surprises (Joseph Wright)

Sterling sellers have seen a boost to the exchange rates available to them today, after the Pound is up across the board of major currency pairs even if only slightly.

This comes on a day that UK Prime Minister Theresa May has reshuffled her cabinet, with most moves being predictable according to political analysts.

Brexit related news is of course likely to continue to be one of the main drivers of Sterling price movements, although there are reports that the uncertainty surrounding Brexit is beginning to fade. Sterling volatility is expected to wane in the short term future after a market gauge that measures expected volatility was trading at a three-year low earlier today, which means that analysts aren’t expecting to see any market swings in the upcoming months for Sterling exchange rates.

Since the Brexit GBP/AUD has lost quite a lot of value, but the pair are currently trading towards the top end of the recent trend despite GBP losing some value recently as the Aussie Dollar strengthened.

Market predictors are one thing, but I personally wouldn’t rule out a big move in either direction for GBP to AUD exchange rates in the event of a major breakthrough or stumbling block being made public in regards to the second round of Brexit negotiations.

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.

Aussie Dollar bull run pauses as data disappoints, but will AUD/GBP continue to climb in the long run? (Joseph Wright)

The strong upward trend for the Aussie Dollar paused today as financial markets were disappointed with data released down under.

The Pound to Aussie Dollar rate climbed back up to 1.73 today after losing value in recent weeks as the Aussie has been strengthening, but the GBP/AUD rate still has a long was to go to recover back to the high 1.70’s it was trading at just a short while ago.

AUD fell in value today though after Australia’s trade balance figures fell short of forecasts and into a deficit, meaning that the Aussie economy isn’t quite as strong as many had expected.

Recently the Aussie Dollar had been strengthening off the back of substantial gains in the value of iron ore, which is a key export of Australia’s.

Moving forward I expect the par to continue to be driven by both the performance of Australia’s economy coupled with Brexit related updates. Sentiment surrounding how smoothly the Brexit will take place and how the UK economy will fair during and after the Brexit have continued to have perhaps more of an impact on the Pound’s value than the performance of the UK economy, especially when we consider that the UK economy outperformed almost every economists predictions yet GBP is still fairly weak.

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 rate hits a 5-month high, will the upward trend continue? (Joseph Wright)

Those following the GBP/AUD rate will be aware of the positive moves for the Pound recently, and within the past 24 hours the rate has hit a 5-month high making it a good time for Sterling sellers.

The rate has traded within just 2 and a half cents of the best levels in the last year, so the questions are now being asked as to whether the pair can reach a new 1-year high.

Those with a currency requirement involving the pair should be aware that the Pound isn’t trading in such a strong fashion against many other major currency pairs, and that in my opinion there is potential for the Pound to fall for a number of reasons.

The UK Prime Minister, Theresa May is currently under pressure as rumours build that there a a number of members of her party prepared to sign a vote of no-confidence regarding her position. Should this issue surface I would personally expect to see the Pound fall quite dramatically against the Aussie Dollar amongst other major currencies.

At the same time inflation hasn’t quite hit the high levels the Bank of England was expecting to see so the chances of future rate hikes have diminished somewhat, certainty regarding the short term future.

If you’re following the GBP/AUD rate and would like to be kept updated to any major swings in the rate, do feel free to register your interest with me.

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.

UK economy growth is picking up, will GBP/AUD reach 1.75 again in the near-term future?

The Pound has picked up once again this afternoon after some better than expected economic data, this time in the form of GDP figures has boosted the markets.

This means that UK economic output in the months of July-September grew by 0.4% whereas it’s grown by 0.5% from August-October. This is of course positive news for the Pound and the Pound is now trading around the 1.7250 mark at the time of writing.

The highest the GBP/AUD rate has traded in the last year is 1.7650 so the rate is now within 4 cents of the best levels so it appears that the rate hike last week from the Bank of England has boosted sentiment surrounding the UK economy.

The think-tank that produced today’s GDP figures also believes that the Bank of England will have raised interest rates to 2% by 2021 which is a bit more bullish than the comments outlined by the BoE last week when rates were hiked, and I think that the Pound would climb quite considerably from its current levels should such a bullish monetary policy be adopted by the BoE.

The next busy day for economic data is Tuesday next week, so feel free to get in touch in the meantime if you would like to plan around this event, should you have any upcoming currency requirements.

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 to Aussie Dollar rate plunges after BoE rate hike, what happened? (Joseph Wright)

This afternoon at lunchtime the Bank of England hiked interest rates by the expected 0.25 basis points, although in the immediate aftermath the Pound fell dramatically against every major currency pair.

At the time of writing the Pound to Aussie rate has fallen by 2% with the GBPAUD rate now sitting at 1.6917 and the AUDGBP rate sitting at 0.5910.

This afternoons move has come as a surprise to the markets, as usually when the base rate increases the underlying currency climbs. The opposite has happened today though as it appears that prior to the move by the Bank of England the hike was priced into the market, and the commentary afterwards was a bit more bearish than the Sterling bulls had hoped for.

It’s looking like there won’t be a particularly aggressive approach from the Bank of England regarding monetary policy moving forward, which is why we’ve seen the Pound lose so much value in such a short space of time.

There won’t be any further major economic announcements out of the UK tomorrow that are likely to move markets to such a great extent, although Australian Retail Sales data is coming out in the early hours of this morning which may impact the rates.

If you wish to be kept updated regarding any other short-term price movements between the pair, do feel free to register your interest with me. Moves such as today’s can result in large differences in a currency transfer outcome so being aware of these moves can be highly beneficial.

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.

 

 

GBPAUD rises on Australian Inflation data!

The Australian dollar has weakened in overnight trading as uncertainty over the Inflation outlook for Australia shifts which has raised concerns over when the Australian Reserve Bank (RBA) would raise interest rates. This is presenting a very interesting short term opportunity to buy Australian dollars which may not last. This morning at 09.30 am is UK GDP and then next week the Bank of England decision which could see the pound slide further, there is of course no guarantee of this but it is a real possibility.

Overall the pound seems like it will lose value in the coming weeks as Brexit uncertainty continues to be a thorn in the side of the pound. Economic data is also starting to suffer so if you need to buy Australian dollars getting something changed on any spike higher seems to me the safest bet. The Aussie is much stronger against the pound because markets are bracing themselves for an interest rate hike longer term, whilst this might have taken a minor step back on the Inflation data overnight, it is still the central element of most forecasts.

Combine the longer term rate hike down under with the uncertainty of politics and economic data in the UK and we can sketch out a fairly concerning scenario for AUD buyers with pounds. If you have a transfer to make in the future buying or selling Australian dollars, making some plans around this latest shift in the market is very sensible. Overall there is a very strong belief that further volatility exists up ahead, it should not be taken too much for granted the Bank of England will raise rates next week and the pound will rise.

Thank you for reading and if you wish to discuss or run through the market please do not hesitate to get in touch with me Jonathan by emailing jmw@currencies.co.uk

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.

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.