Tag Archives: Aussie

Will the GBPAUD rate rise or fall?`

The Australian dollar has been strengthening lately as investors predict that it will be sooner than later the RBA (Reserve Bank of Australia) has to raise interest rates. Where the RBA had previously been adopting a ore neutral stance which had see the Aussie weaker for part of 2017, the expectation is now for the to raise rates in the future. What this means is that the Australian dollar could strengthen even further and we could see rates to buy Aussies with pound getting more expensive. If you need to buy Australian dollars with pounds or even sell AUD for sterling understanding the market and your options in advance is key to maximising the position.

Expectations for the AUD to rise even further against the pound do seem likely but at the same time it would not be all too surprising to see the currency soften now. For Australia to raise interest rates they have to consider the negative impact on the Australian dollar since as a net exporter (they sell more overseas than they import) it is not good for the country to have an expensive currency. They want a weaker currency to encourage inwward investment and stimulate the economy.

Raising interest rates could easily cause the currency to weaken since with their base rate currently sitting at 1.5% it represents a very good investment compared to other currencies to invest in. Therefore I believe if you have a transfer to consider whilst the rates are uncertain you should be looking to make sure you don’t take too much risk and suddenly find the rate has unexpectedly become more expensive.

If you have a transfer to make current levels to buy pounds with Australian dollars are much improved from the last few weeks but this might not last. And for Aussie buyers the outlook is still shaky and we could easily see rates sub 1.60 once again. For more information on the best way forward with your transaction please speak to me Jonathan Watson by emailing jmw@currencies.co.uk to get a fresh overview of the market and analysis of the best way forward.

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

Busy week for Australian dollar exchange rates! Will we rise above 1.70 on GBPAUD?

Tonight and later this week is some critical data for the Australian and global economy that may well shape exchange rates. Exchange rates move all the time for a variety of reasons but one of the main factors driving the Aussie are the outlooks from the Reserve Bank of Australia. The raising or lowering of the interest rate from the RBA has a massive impact on the movements on the Australian dollar as it alters investors perception over the currency. Tonight’s RBA news in the form of the Rate Statement and Interest Rate decision will be closely watched for its effect on the AUD and therefore GBPAUD rates.

Movements of a few cent in either direction cannot be ruled out as whilst the market believed the RBA would not have any change in policy the potential for the market to shift is always high on the Aussie. Owing to the higher interest rate in Australia of 1.5% versus other leading economies of less than 0% or very low interest rates, the AUD is used because of its higher ‘yield’. Like a higher interest rate on a bank account investors will use the Aussie to earn more on their money, therefore any shifts in the likelihood of that interest rate changing down the line will see the currency swing.

Key news later this week not just from Australia but also from the US could see changes in these global sentiments which make the AUD more or less attractive to hold. Clients looking to buy or sell the Aussie should be most aware of the potential for sudden switches in direction, if you are looking to make a transfer why not take a few minutes to contact me highlighting your position so that I can keep you updated on potential developments.

Despite the pound weaker many commentators are stating that perhaps the pound has been oversold. I really couldn’t rule out some small improvements but the likelihood of the pound struggling in the future remains high. If you have a transfer to make and wish for some assistance please speak to me Jonathan by emailing jmw@currencies.co.uk.

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

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.