Tag Archives: AUD

GBP/AUD moves to week high at 1.69 level (Ben Fletcher)

The GBP/AUD rate has moved up to a week high despite a volatile period for Sterling as the political scene takes centre stage. Brexit talks are dictating the movement for Sterling and any sudden good news could start to see the rate move above the 1.70 level.

Australian Economy Strengthening

Despite a slow start to the year, which revealed low Retail slows and Housing construction falling the Australian economy seems to be picking up. Most of the weak 1st Quarter GDP can be put down to poor weather on the East coast of Australia having an enormous consequence on consumer behaviour and construction conditions. However now that Australia is through the storm business conditions appear to be improving with confidence once again returning.

In the longer term what this could mean for the Aussie is continued strength. Australia earlier this year took the record from the Netherlands for the longest consecutive time of never falling into recession. This is no mean feat and despite external economic pressures weighing down on the economy the condition are positive. China and the general commodity market dictate how Australia fairs from a trade perspective and as the markets have settled so has the Aussie.

Aussie sellers are certainly in a positive predicament and are unlikely to see selling levels much below 1.65 in my opinion. However any upticks for Aussie buyers using Sterling should consider the low 1.70’s as a buying level. The market is currently poised to go either way and with the UK struggling with uncertainty anything could change.

If you do have a requirement to change currency I’m confident I would be able to help you execute a transfer. If you would like to discuss the forecast above please feel free to email me at brf@currencies.co.uk. Working for a currency brokerage I am able to set rate alerts to make sure you’re trading at the right time at a level you’re happy with.

Political uncertainty plagues the Pound (Daniel Johnson)

Theresa May’s call for a snap election has caused severe pound weakness. Political uncertainty historically weakens the currency in question and this is definitely the main catalyst for Sterling weakness at present. Many are uncertain how the Conservative- DUP coalition will pan out and the majority of the general public are furious with the £1bn of tax payers money to be handed to the DUP in return for their votes.

The PM’s job is on the line and until we have a a stable government the pound has little chance of a recovery. As usual politicians seem to be far too concerned  with their own agenda rather than  trying to benefit the country. By ousting the  PM I would expect investors to deem this as yet more uncertainty in regards to the political situation and the pound to fall further.

Let us also not forget the Brexit negotiations, this will be a key factor in GBP/AUD buoyancy levels moving forward. Despite the rumors talks could be elongated, it is important to remember the scale of UK imports, particularly  for German cars. It will be detrimental to all involved to play hard ball with the UK.

I am still of the opinion the pound is undervalued against the Aussie. Let us remember it was not too long ago GBP/AUD sat above 2.20. Australia’s heavy reliance on the Chinese could prove to be a problem. Growth, although still impressive is still slowing in China and this has repercussions on the Australian economy. Keep a close eye on Iron ore prices, this is the largest export for Australia and has the power to influence Australian dollar value.

There is also the housing price concern, with over inflated house prices in high wage areas. Some consider this to be unsustainable, although if foreign investors are still prepared to pay the these prices it may not be the case. We only have to look at London as an example.

Overall, although Aussie dollar sellers may see further gains short term. I would not necessarily procrastinate. It is an incredible time to purchase Sterling.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference, so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavor to get back to you as quickly as possible. Thank you for reading.

Will GBPAUD reach back to 1.70?

If you are holding pounds and looking to buy Australian dollars it has been a stressful period with the pound failing to spike as many had predicted on the back of the UK election. There was a belief the pound would rally to perhaps over 1.80, the Aussie having been on the back foot as Chinese data was failing to live up to expectation. Lately however the Chinese data is looking much better which, in conjunction with the pound sliding as the hung parliament divides opinion over the British pound, has seen the GBPAUD rate slip too. If you need to buy or sell Australian dollars making some plans around the next twist and turn is crucial since the current market is not pointing clearly in either direction.

We offer detailed insight and strategy to clients looking to move large volumes of currency around the world generally following property transactions or business transfers. This is because when moving such large volumes of say 50,000 GBP up to multi-millions a small difference in the exchange rate can mean a huge difference in the amount of currency you receive. Getting the timing and planning right is crucial to getting the best deals on the rates.

For clients looking towards the GBPAUD exchange rate pairing looking for better rates this week could offer some fresh opportunities with the latest fresh news over the UK’s political situation and also news relating to the Chinese economy. Since the Chinese economy is so closely linked to the Australian dollar keeping up to date with information here is crucial to getting the best rates. If you have a transfer to make this week has a number of releases which could see the GBPAUD rate move say 1 – 2 cents presenting a quick opportunity for savvy buyers and sellers!

For more information on the best rates and how to manage your exchange please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. If there is anything I can help with please don’t hesitate to contact me directly.

Buying and selling Australian Dollar rates finally expected to re-emerge from political limbo (Joshua Privett)

The Pound has been in a very visible limbo since the inconclusive election result, with Australian Dollar buyers and sellers waiting for news on where rate trends are expected to go moving forward.

That is not to say the interim period has been lacklustre and boring. Far from it. It is simply that economics has taken over in the meantime.

This has been the saga of interest rates which has been a dominant factor in currency value since last year, with the US being the first developed country to raise interest rates since the financial crisis.

Public disagreements between the Governor of the Bank of England, Mark Carney, and members of the BOE Monetary Policy Committee over whether to raise interest rates in the UK or not has seen the Pound behaving like a yo-yo in recent weeks, but with little overall change.

The deciding factor will be the official formation of a minority Government next week, with official voting on their manifesto to go through Thursday-Friday to conclude the month of June.

The fact that any resolution seems likely to help the Pound given the hints noted recently on currency markets should be in the forefront of anyone with a Australian Dollar requirement’s thought process. The question at this point arguably is just how much the Pound will rise up against the Australian Dollar next week, and not if. 

In this context Australian Dollar buyers do not seem to have the same level of urgency as Australian Dollar sellers. You can secure exchange rates for AUD/GBP beofre interbank rates are expected rise back above 1.70 by contacting me over the weekend whilst markets are closed on jjp@currencies.co.uk. Even if your requirement is not until the end of the year, you can pre-book your currency at current attractive levels using the tools available at a specialist currency brokerage. There is not additional cost to pre-book.

I strongly recommend that if you have a currency requirement to buy Australian Dollars to contact me again on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your AUD return.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you a significant sum on a prospective transfer.

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.

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 pound to Australian dollar rate rise or fall on the UK election?

Most reports suggest the pound is likely to rise if Theresa May wins a strong majority in the UK election on June 8th. Potentially this could see GBPAUD busting through the 1.80 level but there are of course never any guarantees with the currency markets! I am of the impression that expectations for sterling have actually been set too high and I wouldn’t be surprised to see the pound coming under pressure. I do actually feel the 1.70 level could be in focus and that after a few tricky weeks for AUD sellers the trend will now actually favour selling AUD for sterling, although of course we are unlikely to see a return to quite the same rates as we had earlier in the year.

The polls currently show Labour winning many more seats than previously expected which would see the Tory majority increase but not perhaps by as much as many believed some weeks ago. The general impression is of course a Tory and Theresa May win but, with the market pricing in a larger Tory win than expected the risk to me is to the downside, ie sterling could fall.

If you have a transfer to consider in the future then making some plans around this historic event is clear wise. We are here to help with an exchange rate I am positive will save you money over other options but also offer support and information for any transfer you might be planning. Understanding how the banks operate and the processes involved to transfer funds can save you lots of time and hassle.

My name is Jonathan Watson and I have worked as a specialist currency broker for close to ten years. If you need to move money overseas I am very confident a conversation with me will help provide some insight and could well save you thousands through a better rate and information on when to execute any transaction.

For more information at no cost or obligation please speak to me directly by emailing jmw@currencies.co.uk briefly outlining your position and preferably providing a contact number to discuss your position through thoroughly.

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