Tag Archives: Aussie

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.

Why is the Australian Dollar weakening against the Pound, and will it continue? (Joseph Wright)

The Pound is trading at it’s 2017 high against multiple major currencies at the moment, with the Pound to Australian Dollar sitting at an 8-month high making the conversion of Pounds into Aussie Dollars a much more attractive proposition than it was for much of last year (after the Brexit vote).

The Pound has been slowly climbing since UK PM, Theresa May announced a snap election in June, and as the conservatives gain a more favourable position within the polls we’re seeing the value of sterling continue to climb.

At the same time the commodity currencies such as the Aussie Dollar have been struggling, as commodity prices have tumbled recently which is likely to have a knock on effect to the Aussie Dollars value as the Australian economy is negatively impacted as a result.

Just last week the price of Oil, Iron Ore and Copper all fell by 7% along with Gold which fell by 3%.

Tomorrow is likely to be a busy day for the GBP/AUD pair as a number of key data releases are due out. UK Interest Rates will be announced along with Inflation data and UK GDP, so there could be some major moves tomorrow. Feel free to get in touch if you wish to be kept updated regarding these releases.

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 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.

GBPAUD rates slip from the recent highs, what can we expect next?

The pound to Australian dollar rate has been very volatile this year hitting fresh highs over 1.70. The recent slide in the value of the pound however has seen GBPAUD slip to almost below 1.60 but we have rebounded back to 1.67. Most analysts believe the uncertainty over Brexit will continue in the interim period which will only cause further problems for anyone holding the pound and looking to buy a foreign currency.

The outlook for the pound remains rather worrying which could see the rate easily slip back below 1.60 in time. I personally expect uncertainty over the Brexit will continue to be a feature on the pound and if you are looking to buy Aussie dollars capitalising on the spikes is the best way forward to avoid future uncertainty.

Most clients are looking to buy Aussie dollars at improved rates hoping the market will favour them but they fail to take account that the 7 cents improvement since last week is unlikely to be sustained. The Australian dollar has weakened in anticipation of the market not raising interest rates as quickly as some had hoped. In my expectations the rates are looking very attractive for AUD buyers, holding on hoping for further improvements could be a very costly venture.

If you are planning to buy or sell Australian dollars recent events have presented an excellent opportunity that might not last. For more information on the latest trends and an exchange rate I am positive will save you money please email Jonathan at jmw@currencies.co.uk

How will the GBP/AUD pair be affected by the Trump Train in the upcoming months? (Joseph Wright)

The Aussie Dollar, amongst other high yielding riskier assets declined yesterday after it was announced that Donald Trump won the presidential election in the US.

The Pound on the other hand was buoyed and climbed to it’s highest levels in some time vs a number of major currencies such as the US Dollar, Aussie Dollar and the Euro.

Exchange rates were very volatile yesterday as the markets decided which direction to move in, and it’s during times like these that timing currency conversions is of paramount importance because the difference between trading at the best time and worst time of the day can make a huge difference.

This is where we as a specialist currency brokerage can assist our clients as not only do we offer highly competitive exchange rates, but we also help our clients make well informed decisions on when to make their exchanges.

The reason for the strengthening of the Pound, and why I think it could continue going into next year is because Donald Trump has previously highlighted his openness to doing business with the UK, which is in stark contrast to the current president, Obama who has previously suggested that we would be at the back of the queue.

When markets are uncertain regarding future policies/power structures there is a historical pattern of moving funds out of riskier currencies such as commodity based ones, like the Aussie Dollar.

Personally I think the Trump presidency could continue to boost the Pound over the upcoming months depending on how smoothly the Brexit process plays out.

If you are planning a currency conversion involving the Pound and Aussie Dollar, it’s 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.

 

Which direction is GBP/AUD likely to move in next? (Joseph Wright)

The GBP/AUD pairing have been trading precariously around the 1.60 level for a short while now, as the pair struggle to find a general upward or downward trend.

Whilst the Pound has clearly fallen heavily since the Brexit vote, and then lost another substantial amount of value around the beginning of this month after UK Prime Minister, Theresa May outlined a deadline for the invocation of Article 50 which will trigger the UK’s separation process from the EU, GBP/AUD seems to have found a floor around the 1.60 mark.

The pair have traded slightly above and below the 1.60 benchmark but personally I think the pair are now range-bound, but there are a number of events/factors which could create a stronger sense of direction.

It’s looking unlikely that the Reserve Bank of Australia (RBA) will cut interest rates further at their next opportunity after some better than expected inflation data released earlier this week, but the Bank of England (BoE) may be forced the cut the interest rates in the UK further as ignoring Sterling’s substantial drop is becoming difficult, as the governor of the BoE, Mark Carney announced earlier this week.

Also a little later this morning UK GDP Figures will be released which could swing exchange rates, with the expected figure 0.3% key as should the release sway from this Quarterly expectation I think the Pound could be in for a volatile morning.

The Aussie Dollar has been aided by the increasing coal and iron ore prices and I think that if the GBP/AUD pair break out of the current trading range they’re in, it will most likely be towards 1.50 as opposed to 1.70 as the ongoing effects weigh on the Pound.

If you are planning a currency conversion between GBP and AUD, it’s 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.

GBP/AUD hit a multi-year low this week, will we see the pair fall lower? (Joseph Wright)

Earlier this week the GBP/AUD exchange rate hit 1.6603 as the Sterling sell off has picked up significant steam over the past 3 trading sessions.

We’re witnessing a historic week for Sterling exchange rates across the board as the currency has fallen to fresh post-brexit-vote lows against a number of major currency pairs this week, with many of those lows being fresh 3-5 year low points for the Pound value, and in GBP/USD’s case, a 31 year low.

The catalyst for this aggressive sell off has been the UK Prime Minister, Theresa May’s comments over the weekend at the conservative conference where she announced that Article 50 will be invoked in March of next year. Whilst not coming entirely as a shock to currency markets as Boris Johnson had previously implied that this would be the case, May confirming these suggestions has really put pressure on the Pound as many were hoping for a ‘Soft Brexit’ whereby prolonged negotiations and delaying Article 50 would allow the UK to retain access to the EU’s single market, although that’s not going to be the case.

Sentiment is highly likely to continue to drive this particular pair but a further interest rate cut from either the Bank of England of the Reserve Bank of Australia will likely weaken the underlying countries currency.

Tomorrow there will be GDP figures released out of the UK which could create movement within exchange rates, particularly downward movement for the Pound if the figure is released below its expectation of 0.3%.

If you have an upcoming currency requirement which involves exchanging the Pound for another currency suck as the AUD, it may be an idea to remove the risk of further falls if you’re working to a budget or timescale, as many analysts are expecting further falls for the Pound.

If you want to be kept up to date on the markets and you would also like to ensure that you are getting the very top levels of exchange for an imminent currency transfer or even a longer term one then I can help you with this.

Not only do we give clients up to date market information but we all work for one of the largest and longest serving currency brokerages in the U.K, so even if you have dealt with your current broker or bank for a long time I would be surprised if I could not show you a saving over what they are offering you – You can email me (Joseph Wright) directly on jxw@currencies.co.uk and I will be more than happy to contact you personally to discuss the various options we have available to you.

When is the best time to buy Australian dollars?

Overnight Australian Unemployment was shown to be better than expected which has helped contribute to a further spike in the value of the Australian dollar. Earlier in the week some positive UK Inflation data helped the pound a little pushing GBPAUD back over 1.70 but currently we are in the 1.69’s. With the Australian central bank the Reserve Bank of Australia having cut interest rates recently and many commentators stating that they don’t feel cutting interest rates will really help the Australian economy very much I don’t see there being much chance of significant renewed AUD weakness. There is always the outside chance of some negative news from China contributing to a weaker Aussie but with some of the more recent Chinese data showing positive trends for now attention remains on the pound. Plus the Australian currency at 1.5% has a much higher interest rate which will present better returns for investors seeking a higher return, this keeps the Aussie favourable against say sterling with almost 0% interest rates.

The pound to Australian dollar rate has slipped from over 2 to now in the 1.60’s just like we predicted on a Leave vote. GBPAUD rates have been flirting with 1.70 and the big question now is will it drop further, when will be the best time to buy Australian dollars? Well it would appear that if you have Australian dollars to buy then moving sooner rather than later is probably the safest bet. This is because much of the recent movement on sterling is linked to the outcome of the Referendum and so far we know very little detail about what this actually means in practice. This political uncertainty is contributing to a slowdown in business and consumer activity which is leading to poor economic data and surprise, surprise the pound is falling!

If you have a transfer involving buying the pound or Australian dollar and wish to learn more about the forecast and your options why not get in touch with one of highly experienced and knowledgeable team? My name is Jonathan Watson and I personally have been helping clients buying and selling currency for over 7 years. Even if you believe you a system in place double checking your exchange rate and information could prove invaluable. I personally have never had any problem getting my clients much better exchange rates than their banks, or their currency broker. For more information please fill in the contact form or if you prefer a more direct and personal approach please email me Jonathan directly on jmw@currencies.co.uk.

 

 

GBP/AUD drops below 1.70 and there could be further to go! (Joseph Wright)

The 5 year chart for the GBP/AUD currency pairing makes for an interesting observation when you are considering a currency transaction between the pair, as judging the pairs fair value proves difficult.

Those looking to sell Pounds in order to purchase Australian Dollars are likely to be put off by Sterling’s recent drop, as since the ‘Brexit’ and the subsequent Interest Rate cut down to 0.25%, coupled with the Bank of England’s aggressive financial stimulus package we’ve seen around a 30 cent drop which is hard to stomach for those looking at a recent chart.

These sentiments may change once the investor looks into the 5 year historical chart, as over this time the Pound has actually gained 9.89% since August 2011 despite the recent drop, meaning that historically speaking current levels aren’t disastrous.

Moving forward I do think that there could be further for the Pound to fall, as economic updates outlining the performance of the UK in it’s post-brexit stage may disappoint and I expect markets to react overly negatively to these kinds of updates.

Aussie Dollar sellers looking to buy Pounds on the other hand have perhaps a harder decision to make. Recently the rate has moved in your favour very substantially, and it would be disappointing to miss these current levels although there could be the potential for further falls.

This is where staggering your entry level by breaking the amount up into tranches can work to your advantage, as you can hopefully average up over time and eventually end up with a higher than originally planned average entry level. This method, whilst not costing anymore carries an element of risk as these favourable levels may not be available for much longer, but it has worked for a number of my clients and I’ll be happy to discuss it with you if you have trade to make.

Feel free to contact me (Joe) if you wish to discuss an upcoming currency exchange you need to make. You can contact me on 01494 787 478 or 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.

 

When should I perform my GBP/AUD Trade? (Daniel Charles Johnson)

With Theresa May appointed as prime minister and a new cabinet in place I think we will see Sterling gradually gain value. There are two events which could put a halt any Sterling rally however. First up, on the 4th August we have  the Bank of England’s (BOE) decision on interest rates. There was a high probability of a rate cut at the Monetary Policy Committee’s (MPC) meeting earlier in the month but rates remained at 0.25%. Normlly if a data release goes a against the general consensus there is a big swing on the  market. On this occasion there was little movement. This could be due to the strong possibility of a rate cut in August. It is common knowledge this will happen, therefore I would not expect the pound to drop a great deal  if a  cut does happen. The other event which could cause Sterling to fall in value is if the button is pushed on article 50. Article 50 engages the UK’s exit from the EU, this will cause Sterling to lose value. I would not expect this to occur until early next year.

If you are selling AUD I would be tempted to move at current levels. You are currently at one of the best times to sell the Aussie since September 2014. Three is the chance of a rate cut by the Reserve Bank of Australia on 2nd August which makes it a risky business to hang on for the BOE decision on the 4th. Personally I would be looking to sell AUD ASAP.

If you have a currency requirement it is vital to be in touch with an experienced broker. The timing of your trade is key during such a volatile  times, If you have a veteran broker on board he can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to help with your trade I will be happy to help. Let me know the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the UK and as such I am in a position to beat nearly every competitors rate of exchange. You would be looking at around a 4% saving in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog and I look forward to hearing from you.