Tag Archives: Aussie

UK GDP gives the pound a boost vs Australian dollar

This morning at 9.30am UK Gross Domestic Product numbers were revised to 0.2% from 0.1% for quarter 1 which has given the pound a boost against the Australian dollar. The Bank of England in recent weeks have been hinting that an interest hike could occur as early as August and the improvement in GDP certainly helps the cause. For Australian dollar buyers rates have improved by 0.5%.

Another reason why the pound has been making progressive gains against the Australian dollar is that the Aussie has been weakening due to the trade war between the US and China. The US is Australia’s most important defence ally and China the most important trade partner, therefore Australia are stuck between a rock and a hard place. The theory behind it is that further tensions will put further pressure on the Australian dollar and therefore I would expect GBPAUD to break through 1.80.

In other news the EU summit is now over, and the message from the EU is that the UK need to make progression fast. UK Prime Minister Theresa May has called a meeting at her Cheques country side retreat,  and the full cabinet will attend. The rumour on the market is that Theresa May could announce a soft approach which will be outlined in her white paper which should be released early July. I expect this may give the pound a small boost.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

 

 

Australian Dollar predicted to rise as global economy picks up

The Australian Dollar has been strengthening in recent weeks, with the GBP to AUD exchange rate being a good example of how much AUD has strengthened after the rate has dropped from around 1.85 to around 1.75 over the last few months.

A number of analysts have begun to adopt a hawkish outlook for the Aussie Dollar moving forward, and the HSBC chief economist for Australia and New Zealand is the most recent key figure to share this view. His name is Paul Bloxham and he’s cited the largest increase in 6 years for the counties GDP as a key indicator as to the health of the economy.

A global pick up will benefit the Aussie Dollar due to its export driven economy, but I also think its important that our readers are aware of the importance of the countries services sector as its now more important to Australia than its mining sector.

Next week on Thursday there will be a number of key releases out of Australia, mostly covering the health of the countries employment sector. If you would like to plan around this event do feel free to register your interest with me.

The economy is likely to remain resilient in the face of trade wars breaking out, due to its close trading relationship with China. One downside though is that the RBA doesn’t plan on hiking interest rates until next year, meaning that the currency may lose some of its competitive edge.

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 Australian Dollars reverse in fortunes likely to continue?

The Australian Dollar is continuing to strengthen, and put in another strong performance yesterday as sentiment surrounding the Aussie Dollar appears to be turning for the better.

There is renewed hope that the coalition in Italy will pull through after it stalled over the weekend, and this is helping push the Aussie Dollar higher as it removes uncertainty from the markets to a certain extent. There cost of commodities has also increased recently which has boosted the Aussie Dollars value, as the Australian economy is highly export driven.

I also think that now the talks of a trade war between the US and China have subsided, fears surrounding the global economy have also subsided leaving the Aussie Dollar in a stronger position. The positive moves for AUD recently can be highlighted when we consider that the Pound has lost almost 10-cents vs AUD in a short space of time.

It has also emerged that the US economy isn’t growing at the rate some economists had expected, meaning that there may not be as many rate hikes in the US as some had expected. This has boosted AUD as it could means investors will be less likely to move funds from AUD into USD in order to get a greater return.

Moving forward I expect to see AUD continue to strengthen, although further rate hikes from the US Fed Reserve later in the year could impact AUD negatively.

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.

GBP/AUD could be set to fall further after UK inflation unexpectedly drops

Bets in favour of the Bank of England hiking interest rates in the UK this year slid yesterday, after the UK inflation data released showed a drop in the cost of living in the UK.

Markets weren’t expecting this, and the Pound’s trend appears to have reversed after losing almost 10-cents against the Australian Dollar over the last month or so.

The markets had expected to see an interest rate hike two-weeks ago today after the UK economy had been showing some positive signs, but the drop in economic growth (its fallen to a 5-year low according to the latest GDP figures) has put the brakes on these plans.

Some economists are now predicting that it may not be until November this year until the next hike happens and that will of course be determined by how the UK economy performs.

There haven’t been a lot of reasons for the Aussie Dollar strength and I think the recent price changes can be put down to the Pound’s weakness. There aren’t expected to be any rate hikes down under this year and the Australian economy has also demonstrated signs of a slowdown.

The current GBP/AUD level is trading at a 2-month low, and if you wish to be updated in the event of a spike in the price do feel free to register your interest.

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.

BOE May Rate Hike now in Question (Daniel Johnson)

GBP/AUD in detail

Following a host of positive data from the UK last month we have seen a complete reversal. We saw a fall in inflation, (which is now below average wage growth), retail sales were shocking, predicted to be – 0.5% coming in at -1.2% and today a fall in GDP to 0.1% when 0.3% was the expectation.

A rate hike from the Bank of England (BOE) was widely expected in May, however Mark Carney, Governor of the BOE said in a recent BBC interview that a hike may occur later in the year. This along with the poor run of data could well stop the rate hike occurring. Despite this I would not rush out and sell my Sterling to buy Aussie. I still believe we are range bound between 1.80-1.85.

If it drops below 1.80 for more than a few days it may be time to consider moving if you have to move short term. Personally I would hang on for the high 1.83s or 1.84s. If you have real concern consider a Stop/Loss contract for protection.

The Reserve Bank of Australia (RBA) has a quite negative outlook in regards to hiking rates, there is little chance of a hike this year. If you take into consideration the Federal Reserve have already raised rates to 1.75% and intend to hike rates as many as two further times this year you can see why investors are moving from the Aussie to the Greenback. The US-China trade war could also be damaging to the Aussie. If Chinese growth is hindered by tariffs you would expect Australia’s primary export, raw materials to fall in demand and price which would be bad news for the Australian Dollar.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavor to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.

If you already have a currency provider in place. Drop me an email with what you are being offered and  I am very confident I will be able to demonstrate a significant saving. It will only take you two minutes and I am  sure it will be worth your while. You can trade in safety knowing you are with a Foreign Currency Direct PLC, a firm trading for over 16yrs and FCA registered.

If you would like my help feel free to email me at dcj@currencies.co.uk.

Thank you for reading.

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.