Tag Archives: AUD/EUR

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.

GBPAUD hits 1.70! What next?

The pound to Australian rate has hit the 1.70 mark as investors embrace Theresa May’s plans to call a snap General election. Expectations for the pound are now very much positive as investors find answers to some of the questions of uncertainty which have been plaguing the pound in the last few weeks and months. This is not just a story about the pound, of course, the Australian dollar has fallen back as the RBA indicate what many of us suspected some time ago, further interest rate cuts down the line are a real possibility.

GBPAUD could now move much higher as some of the previous reasons to hold on to Australian dollars evaporate. Expectations for the Australian dollar to move higher have been largely hampered in recent weeks as a mixed bag of economic data and a stronger pound makes life difficult for Australian dollar sellers. If you have Australian dollars to sell and are hoping for big improvements you might need to remind yourself of just how much the market has improved for you since the Referendum! With over 40 cents between the high and the low Australian dollar sellers are now at some of the best rates they have had since 2013!

GBPAUD could now well rise further, particularly since the likelihood is Theresa May will win the election with a very large majority. The overall expectation for the rates is that we could now easily test 1.80 in the next 4 weeks. If you have a transfer buying Australian dollars then making some plans in advance is vital to the understanding of where rates might head.

We could now be about to break into some very much fresh ranges and any clients with an expectation to buy or sell the Australian dollar should be doing what they can to plan in advance for future volatility. If you have a transfer to make and wish to get an overview of the market and receive some updates and news on what might be happening please feel free to get in touch directly with me Jonathan by emailing jmw@currencies.co.uk.

Will risk aversion within the markets continue to weaken the Aussie Dollar? (Joseph Wright)

The Pound is proving resilient in the current market, and despite posting losses towards the end of last week after some less than impressive economic data releases the Pound is remaining strong.

Last Friday data revealed a decline in UK industrial/manufacturing production, and it was also announced that the UK’s trade deficit has expanded. Despite this the Pound is still holding onto the gains its made since the Brexit officially begun and for those planning on making a GBP to AUD transfer, it’s worth noting that the Pound is up 7 cents from its lowest point throughout 2017.

The Pound to Aussie Dollar rate has also been boosted due to AUD weakness as the action taken by Donald Trump in Syria has resulted in risk averse markets, and look no further than the boosts to golds value to confirm this. Commodity currencies tend to weaken in times of risk aversion and the Aussies recent moves have left the currency trading at a three-month low against the US Dollar.

There is also the issue of the housing market in Australia overheating and this issue keeps hitting the headlines.

There’s an argument to suggest that a weaker currency is a benefit for Australia’s export driven economy so I wouldn’t rule out a move from the Reserve Bank of Australia in order to weaken the currency further in order to keep the economy competitive.

Moving forward I’m expecting to see the Pound recover more ground from AUD after the initial drop after the Brexit vote. Those converting Aussie Dollars into Pounds are still in a great position after that drop, but the gains are slipping away as GBP/AUD recovers back to levels closer to 1.70 than 1.60.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

What can we expect next on GBPAUD rates?

The pound to Australian dollar rate has improved further to the highs seen in January almost touching 1.66. There is some important economic data due out today which could easily change the picture on the rates with UK Industrial and Manufacturing data due at 09.30 am and then an estimate of GDP (Gross Domestic Product) at midday. If you are looking to buy Australian dollars you are currently 7 cents higher than the lows that were established below 1.60 earlier this year.

With markets now eagerly awaiting the latest news on the UK economy the big challenges ahead will be the extent to which the UK weathers any poor economic data or the likelihood of any interest rate hike or cut in Australia. Recent comments by the Reserve Bank of Australia indicate that a cut is more likely which could present yet further opportunities for Aussie buyers in the future.

With the market squarely focused on the US too, economic data today could trigger some movements on the Australian dollar. Any speculation the US might be looking to raise interest rates sooner than expected could weaken the Australian dollar as investors sell off Aussies and increase their holdings of the US dollar. The key US data is Unemployment and Non-Farm Payroll data at 13.30 UK time, it will be closely watched by investors and could easily trigger some movements on the GBPAUD rate.

GBPAUD is up at some of the highest levels we have had since January which is presenting a great opportunity for Australian dollar buyers. If you have a transfer to make in the coming days and weeks these rates will not be around for long. To discuss the latest trends and themes which will move your exchange rate please speak to me Jonathan by emailing jmw@currencies.co.uk.

Will the Australian dollar rise or fall against the pound?

The pound to Australian dollar exchange rates has improved lately as the pound finds some better form and the Australian softens every so slightly. In the most recent communications from the RBA (Reserve Bank of Australia), we learned that the RBA are concerned over rising house prices. We also learned that the RBA view the currency as too strong and whilst only a few weeks ago the view was that the RBA might raise interest rates later this year, for now, the direction appears to me to be fairly neutral. If you are making a GBPAUD exchange in the coming weeks I believe a big factor will be the Article 50 direction for sterling. With plenty of volatility expected nothing should be too readily assumed!

GBPAUD hit 1.59 last week as the lack of interest rate hikes in the United States presented a weaker US dollar. As the US dollar was sold off it benefitted the Australian currency as the Aussie is used by investors to benefit from its higher interest rates. By ‘parking’ funds in Australian dollars, investors have a higher rate of interest and therefore earn more on their money. Such trends help the Australian to strengthen and this partly explains some of the overall strength of the Australian dollar against the pound.

I would expect GBPAUD rates could move as much as 11 cents between the high and the low as markets digest the release of Article 50. I forecast rates between 1.56 and 1.67 depending on how the market receives the news. Because this has never happened before the scope and potential for swings are high.

If you have a transfer involving buying or selling Australian dollars then making some plans in advance is vital. If you would like some assistance with the timing and planning of any transfers you may contact me directly on jmw@currencies.co.uk. I have worked for almost ten years assisting clients buying and selling Australian dollars for pounds and am positive I can offer some useful assistance with a really good exchange rate (above other companies) and some useful information to make an informed decision on when to buy your currency.

Will the Pound fall when the Brexit begins next Wednesday? (Joseph Wright)

The Pound’s value was relatively unchanged in the wake of the UK government announcing the date for the start of the Brexit.

Towards the end of last week it emerged that the 29th of March will be the day Brexit is officially triggered, as UK Prime Minister Theresa May will invoke Article 50 in what Brexit secretary, David Davis has called ‘the most important negotiation for this country in a generation’.

I think the reason the Pounds value remained mostly unchanged is because the financial markets were expecting the announcement, after May made us aware of the governments plans and timescales towards the end of last year.

Personally, I think the Brexit is mostly priced into the Pounds value and I’m actually quite optimistic regarding the Pounds value moving forward. I think the major drops in the wake of the vote have seen the Pound consolidate at its new levels and it appears to see support at the 1.60 level against the Aussie Dollar.

The rising inflation in the UK is also likely to result in an interest rate hike which would likely boost the Pounds value, and there are concerns in Australia that the housing market is overheating, particularly in cities such as Melbourne and Sydney which could impact AUD’s value.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

What next for GBPAUD exchange rates?

The pound spiked impressively against the Australian dollar yesterday as the Bank of England indicated the possibility of higher interest rates to help maintain Inflation. The Australian dollar was actually weaker too on the back of Unemployment data which reflected a much weaker Unemployment picture than previously thought. If you are looking to make a transfer in the coming months and weeks than understanding just where the Australian economy and the UK’s Brexit negotiations are headed is key.

The Australian economy has been buoyed by rising commodity prices and continued solid Chinese economic growth and investment. The higher interest rates in Australia also offer investors are solid platform to invest in presenting much greater returns than the in some case negative offerings from elsewhere. Whilst the United States raising their interest rate this week did help the Australian dollar a little more, the Aussie lost ground to rise back above 1.60 on GBPAUD.

I personally think the rate will struggle to maintain itself above 1.60 as the pending UK Brexit negotiations and fears are likely to unsettle the pound. Most commentators believe the triggering of the Article 50 clause will see the pound weaken but I believe we might see some small improvements in the value of sterling here, although ultimately they will prove shortlived.

If you have a transfer to make buying or selling Australian dollars we are a very important time. With rates hovering around 1.60 the prospect of events getting even worse for Australian dollar buyers is highly likely. Clients buying Australian dollars hoping that this is a ‘bottom’ in the recent trends could be in for a nasty shock if we hit 1.55 or worse in the coming weeks.

Many clients said it was painful to buy at 1.80 and even 1.90 last year failing to believe us when we said it would get worse. Some clients also failed to believe us when we had rates above 1.70 and we predicted it would get worse. The global conditions that contributed to the GBPAUD rates sliding to some of the lower levels in the last few years remain and I think Australian dollar buyers need to be very careful about having expectations that are too high.

To discuss the currency markets and all of your options with a currency specialist with almost ten years experience handling the personal and business requirements of thousands of clients in Australia and the UK, pease contact me Jonathan Watson on jmw@currencies.co.uk or call 01494 787 478 in UK business hours. 

US Interest Rate Hike could weaken the Australian Dollar (Daniel Johnson)

Could there be an Investor Exodus from the Australian Dollar?

The Australian Dollar has strengthened significantly against the pound of late. There has been positive figures from Australia coupled with the uncertainty surrounding Brexit. Data has been so good in fact, Australia has recently overtaken Holland for having the longest successive period of growth without recession. Wednesday could however be an opportunity for Sterling sellers.

Wednesday will see the Federal Reserve US interest rate decision. It has been widely publicised there is the strong possibility of a rate hike. Odds of a hike currently sit at 80%. If the hike occurs, the Australian Dollar will certainly lose appeal to the investor. With higher levels of safety and now higher returns than previously, the US dollar could well be the destination of choice. We could see significant Australian Dollar weakness following the rate decision.

Brexit Update

The House of Lords have put forward two amendments to the exit bill. They wish to have a vote by MP’s on the final bill and they would like the rights of current EU citizens residing in the UK protected.  The bill has to be approved by the House of Commons, however if the amendments are rejected, there is the possibility that article 50 could be triggered as early as midnight this evening. This would definitely be a shock to the markets and you could expect high volatility on the exchange.

Trading GBP/AUD?  – Be sure to be in touch with a Broker if you want the most for your money

If you have a currency requirement it is vital to have an experienced broker on board to assist with your trade. It will be extremely difficult to maximise your return during such volatile times. I can provide an individual trading strategy, picking the correct contract to suit your needs. I am also prepared to perform a comparison against your current provider and I very confident I will be able to show you a significant saving. Let me know the currency you are trading, the size of your trade and timescale and I will endeavour to get back to you as quickly as possible. You can trade in the knowledge that you will working with a brokerage in the business for over 16yrs and one that is FCA registered. I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you and thank you for reading.

 

 

GBP/AUD declines further, will the pair fall below 1.60? (Joseph Wright)

Sterling is dropping in value once again against the Aussie Dollar, which in contrast to how the currency is performing against other major currencies such as the Euro or the US Dollar.

After some less than impressive US economic data releases so far this week, demand for the high yielding Aussie Dollar is on the rise as the likelihood of the US Fed Reserve Bank raising interest rates 3 times this year is likely to weaken if economic data out of the US doesn’t justify it.

Planning a currency exchange involving the Aussie Dollar can be difficult as it’s performance depends on a number of outside factors. There are fears the Aussie could weaken as the year goes on if the US is to raise interest rates a number of times this year as demand for the US Dollar will then increase, and investors would likely move deposits from the likes of the Aussie Dollar into the US Dollar.

The Australian economy is also reliant on key trading partners such as China so a slowdown in the Chinese economy could also weigh on AUD’s value but as it stands the currency is doing particularly well.

With the Brexit process to begin next month I think there’s a chance the Pound could come under additional pressure, and we may see the mid -market level between GBP/AUD fall below 1.60.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Will GBP/AUD continue to move upward, and is 1.70 a realistic price target? (Joseph Wright)

The next 24 hours are likely to be busy for Sterling exchange rates across the board, so if you’re planning on making a foreign currency exchange it’s worth keeping a close eye on currency markets and making your currency broker aware.

At 12.00pm tomorrow afternoon (UK time) the Bank of England will announce it’s most recent Interest Rate decision as well as the banks plans for monetary policy moving forward, and how the voting members of the BoE voted.

Then 30 minutes later the Governor of the BoE, Mark Carney will give a speech which is likely to be watched closely as is always the case but especially now that the Brexit plans are public and soon to be implemented.

Positive sentiment surrounding the UK economy after recent GDP figures demonstrated that the economy is the strongest performing in the G7 group of countries has boosted the Pound’s value. Since it’s lows in January the currency has strengthened by around 6 cents making large currency transfers from Pounds into Aussie Dollars much cheaper.

At the same time there are fears regarding the Aussie economy after recent data demonstrated a slowdown in inflation. This coupled with a slowing property market has left many economists believing that there will be interest rate cuts down under this year which could push AUD lower, offering those converting GBP into AUD with more attractive trading levels.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.