Tag Archives: Aussie

What can we expect in the future from GBPAUD exchange rates?

GBPAUD exchange rates have been improving lately reaching some of the best rates to buy Australian dollars with pounds since the Referendum in June 2016. This is very good news for any clients looking to make an international transfer in the future as the last few months have generally been difficult for the pound. The good news may well continue further but with plenty of potential for the pound to struggle clients buying Australian dollars with pounds should I believe be thinking very carefully about what they are aiming for.

The Australian dollar has weakened as a consequence of a much stronger US dollar which is seeing investors transfer their holdings in Australian dollars through to the US dollar. With higher base interest rates than Australia the US dollar has become a much more attractive currency to hold and the previous arguments for holding onto the Australian dollar diminish.

The RBA (Reserve Bank of Australia) is likely to be very much on course to be raising interest rates down the line but with the UK and also the US likely to be raising interest rates before the RBA, the prospect for the Aussie to weaken further seems high. Expectations for the GBPAUD rate are in my opinion that it will rise further so if you are looking for any transfers in the future and wish for updates on what is likely to happen, please contact myself, Jonathan Watson, directly.

Please email jmw@currencies.co.uk for more information and thank you for getting in touch.

Aussie Dollar strengthens despite RBA’s negative comments, where to next for the Aussie Dollar (Joseph Wright)

The Aussie Dollar has surprised the markets today after performing well, despite some downbeat comments from the Reserve Bank of Australia.

those of our readers following the Australian Dollar will be aware that the currency has lost a lot of value recently, with some economists predicting that the downward trend could continue.

Although this blog tends to have a Aussie Dollar to Pound narrative quite often, it’s worth noting that AUD has lost 5% against the US Dollar since the end of January which is a substantial drop even for the commodity based currencies.

When compared with the Pound, there appears to be support for the Aussie Dollar which has so far stopped GBP/AUD going above 1.80 since the Brexit vote. On a number of occasions the pair have got close but each time there is a reversal, so it will be interesting to see the Aussie Dollar goes from here.

The Reserve Bank of Australia (RBA) warned that interest rate rises remain some way off. With the US FED Reserve hiking rates and US banks likely to offer a higher rate of return than AUD based ones soon, it’s leading many economists to predict further falls for the Australian Dollar.

Australian GDP has also been softening with the GDP (economic output) level falling below the 0.5% expectation over the past quarter.

If you would like to be notified in the event of a major market movement for the GBP/AUD 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.

 

What factors could push the Pound to Aussie Dollar rate above 1.80 this year? (Joseph Wright)

The Pound to Aussie Dollar rate has been hovering just below the 1.80 mark for some time now, and although the GBP/AUD pair appear to have consolidated between 1.75 and 1.80 the pair are yet to properly test the 1.80 threshold.

AUD has been boosted in the early hours of this morning after the Reserve Bank of Australia’s minutes from their latest interest rate decision were announced. The RBA remains positive focusing on wage growth and a pick-up in the global economy moving forward which could lead to a rate hike from the RBA later in the year.

The topic of a rate hike in Australia is likely to be key moving forward as a number of other major economies have begun hiking rates now. AUD had previously benefited from having some of the highest interest rates available in the developed world but as other currencies now offer similar returns AUD has lost its appeal somewhat, and this issue is what could give the Pound a chance of gaining on AUD pushing the GBP/AUD above 1.80.

JP Morgan recently offered their opinion on the Aussie Dollars prospects and suggested the currency could fall as weaker commodity prices and monetary policy divergence put pressure on the AUD’s value.

There is an important data release out this morning from the UK in the form of Average Earnings data. This is key because the figure has disappointed recently and struggled to keep up with inflation levels which had previously made the BoE hesitant to hike interest rates. Should wages have increased over the past 3-months the chances of a rate hike are improved so I would expect to see a jump in the Pound’s value should this be the case.

Planning around events such as these can prove beneficial, so do feel to get in touch to discuss any upcoming transfers you plan on making.

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 Aussie Dollar rate recover back to pre-Brexit levels anytime soon? (Joseph Wright)

There has been a 1 and a half cent difference between the high and low for GBP/AUD today, as the pair appear to be continuing to decide which direction to move in next.

Sterling has performed in a mixed fashion against the majority of major currency pairs today and I think the economic data released this morning is perhaps one of the reasons for this.

This morning the office for national statistics (ONS) reported that annualised UK Inflation figures for January showed 3%, justifying the Bank of England’s concerns regarding the rising rates of inflation. This was above the expectation of 2.9% and and considerably above the BoE’s 2% inflationary target figure.

The potential for another rate hike from the BoE is now more realistic, and with wage growth now beginning to show signs of an improvement I think there is a chance of it happening this year which is why the pound has been climbing.

GBP/AUD is currently just under 1.80, and if the pair breach this key level I can imagine seeing the rate break through into the 1.80’s even if it’s proving a stubborn barrier up until this point. A move towards 2.00 would be back to pre-Brexit levels, and should AUD continue to weaken I think seeing GBP/AUD closer to this mark sometime throughout 2018 isn’t something to be ruled out.

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 breaks through 1.75 (Dayle Littlejohn)

Over the last three months GBPAUD exchange rates have fluctuated 8 1/2 cents which has given clients that are buying or selling Australian dollars opportunity. At present GBPAUD has broken through 1.75 and I expect the pound could continue to make further inroads against the Australian dollar.

This week Iron ore prices have showed a slight decline and today Iron Ore is 0.8% down. The Australian economy relies heavily on Iron Ore and Australian dollar exchange rates have a direct correlation. Many forecasters are split to whether Iron ore  over time will rise or fall. Ultimately it all comes down to how much China buy throughout the year. For many years forecasters have suggested a slowdown for China is on the cards but they continue to produce the economic numbers.

Tomorrow morning the UK release key economic data releases in the form of average earning and unemployment rate. Unemployment remains at record lows which is fantastic for UK exchange rates, even though 0 hour contracts are included within these figures. However the average earnings numbers are the concern for the UK. Inflation is outpacing average earning and the UK public are feeling it. If this trend continues further pressure will put on the Bank of England and a change in monetary policy could occur.

Longer term Brexit negotiations will drive the price of GBPAUD. I personally believe that the UK will come to an agreement with the EU therefore a sustained period of 1.80 towards the end the year could be on the cards.

If you need to buy or sell Australian dollars and would like to save as much money as possible, feel free to email me with your requirements and I will respond with the process of using our company drl@currencies.co.uk. As a company we pride ourselves in the ability to get you a better exchange rate than your current currency provider or your bank. In addition we can outline your options and the potential future events, which will impact your exchange rate. This will help you to make informed and educated decisions.

 

 

Will GBP/AUD break out of its current trading range? (Joseph Wright)

The Pound to Australian Dollar exchange rate has remained in the early 1.70’s for a few weeks now, with Sterling sellers basing the best trades off of mid-market levels of 1.73.

Since spiking up to just under 1.80 the GBP/AUD pair has corrected and I think that trade levels just over 1.70 are a fairer value for the pair, so it will be interesting to see whether any data or news will have the capacity to push the pair out of the current range.

Sterling has been boosted in recent days as UK Prime Minister, Theresa May has reshuffled her cabinet in order to create one that better reflects the society that she serves. There haven’t been any major shocks and the main members such as Philip Hammond, Boris Johnson and David Davies have kept their high profile positions.

The next step for Brexit negotiations will be trade talks, of course an important stage which may have a big impact on the Pounds value so it will certainly be worth following the talks. The transitional deal and how the UK is expected to perform during and after this period is likely to impact Sterling exchange rates.

The UK economy overperformed last year when we consider the forecasts from the majority of financial institutions, and I think if the UK puts in another strong performance we can expect to see the Pound push over 1.80 at some stage during the year.

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 continues to strengthen as commodities soar, will this trend continue? (Joseph Wright)

The Pound to Australian Dollar exchange rate can at times be heavily linked with what’s happening outside of the UK and Australia, as strange as that seems.

Recently we have seen quite a dramatic move in favour of the AUD, which has coincided with the weakening of the US Dollar. Investors are becoming more apprehensive regarding holding funds in the US Dollar, as both political issues surrounding North Korea and weak inflation have damaged sentiment towards the US Dollar.

The US Fed plans to hike interest rates three times this year, but if this doesn’t actually happen which is a possibly as current Fed Chair Janet Yellen is expected to be replaced in February, I would expect to see the US Dollar weaken which is what we’re already seeing as fears over US inflation levels dropping are dampening hopes of the rates hikes.

Also, at times of US Dollar weakness the financial markets generally gain a greater level of risk appetite. With the Aussie Dollar being a commodity based currency and currently offering one of the highest returns in the developed world it’s not unusual to see AUD boosted.

If you wish to be notified if there is a major move for the GBP/AUD pair, do feel free to get in touch with us as working on a dealing floor allows us to react immediately in order to help our clients.

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.

Factors influencing GBPAUD exchange rates

In recent weeks the pound has been making considerable gains against the Australian dollar for a few reasons. The Reserve Bank of Australia more often than not have been giving dovish statements in regards to future interest rate hikes. The Governor has said that it’s likely the next decision will be to hike however this may be at the end of 2018 or even 2019.

The US federal reserve have been hinting towards raising interest rates in December which would mean US and Australian interest rate would be the same. Speculators have and will flock to the US dollar instead of the Aussie as its seen as a safer currency and therefore less risk. Less demand for the Australian dollar means it becomes cheaper to buy.

Deadline day is getting closer for the UK Prime Minister Theresa May. The EU Commission will meet on the 14th and 15th December to discuss whether trade negotiations can begin between the UK and EU. Reports are suggesting that the divorce bill and EU citizens rights could be agreed but the sticking point could still be the Irish border.

Personally I expect the Australian dollar could have a tough end to the year and major sell offs of Australian dollars into US dollars. Couple that with positive news from the Brexit negotiations, I expect GBPAUD exchange rates could push towards the 1.80 mark.

If you are trading GBPAUD this week, month or year I would recommend emailing me with the the reason for the transfer (company goods, property purchase) and your timescales and I will response with the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage, I would strongly recommend you compare rates as I am confident I will be able to offer you additional savings with your transfer. All you need to do is email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

 

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.

Should I trade my Australian dollars into sterling now? (Dayle Littlejohn)

For people that are emigrating to the UK at some stage you will need to convert Australian dollars into Sterling and thats where I come in. The currency company that I work for undercuts banks exchange rates which means you will have more sterling for when you arrive on UK shores.

Since the Brexit vote rates for selling Australian dollars to buy sterling have been fantastic however in recent weeks the pound has been recovering against the Australian dollar due to the devaluation of the Australian dollar and the strengthening of sterling.

Australian inflation fell last week, which confirms the Reserve Bank of Australia’s commentary that an interest rate is completely off the cards. UK inflation has been on the rise for many months due to the weaker pound and it’s likely that the Bank of England will raise interest rates this Thursday which means GBPAUD could push towards the mid 1.70s.

The key economic event that will continue to drive GBPAUD exchange rates is the Brexit negotiations. The UK and EU negotiators have made it clear that decisions need to be made in the upcoming months, and UK Prime Minster Theresa May confirmed last week that both parties are close to securing the EU citizens rights deal. This is so important for sterling exchange rates as a deal will mean stage 2 negotiations can begin.

For people that need to convert Australian dollars into pounds, you are still receiving something I call ‘the Brexit discount’. In the upcoming months I expect the pound to continue making inroads against the Australian dollar therefore converting sooner rather than later would be my strategy.

If you are buying or selling Australian dollar in the upcoming weeks, months or years 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! **