Tag Archives: australian dollar

GBPAUD breaks through 1.70 (Dayle Littlejohn)

In recent weeks the pound has been losing ground against the Australian dollar and exchange rates have fallen from 1.75 to 1.67. However today Governor of the Bank of England Mark Carney has given Australian dollar buyers something to smile about, as UK interest rates could be hiked in the upcoming months, which would provide strength for sterling as investors look for higher returns on their investments.

The Governor announced today that the MPC will be debating interest rates in the upcoming months and a rate rise all depends on business investment, wage growth, Brexit negotiations and costs for labour.

Off the back of the positive news for the pound GBPAUD has now breached 1.70. To put this into monetary terms the 3 cent improvement this week will save clients £10,000 when purchasing 1,000,000 Australian dollars.

Looking further ahead I expect the pound to continue the upward trend for the remainder of the week and into next week as UK Prime Minister Theresa May should be able to put the election behind her when MPs vote on the queens speech later this week.

The leader of the opposition Jeremy Corbyn has stated he will try to make amendments to the Queens speech but in reality I can’t see any conservative MP voting against their own party, therefore this story should be over by this time next week.

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! **

GBP/AUD moves to week high at 1.69 level (Ben Fletcher)

The GBP/AUD rate has moved up to a week high despite a volatile period for Sterling as the political scene takes centre stage. Brexit talks are dictating the movement for Sterling and any sudden good news could start to see the rate move above the 1.70 level.

Australian Economy Strengthening

Despite a slow start to the year, which revealed low Retail slows and Housing construction falling the Australian economy seems to be picking up. Most of the weak 1st Quarter GDP can be put down to poor weather on the East coast of Australia having an enormous consequence on consumer behaviour and construction conditions. However now that Australia is through the storm business conditions appear to be improving with confidence once again returning.

In the longer term what this could mean for the Aussie is continued strength. Australia earlier this year took the record from the Netherlands for the longest consecutive time of never falling into recession. This is no mean feat and despite external economic pressures weighing down on the economy the condition are positive. China and the general commodity market dictate how Australia fairs from a trade perspective and as the markets have settled so has the Aussie.

Aussie sellers are certainly in a positive predicament and are unlikely to see selling levels much below 1.65 in my opinion. However any upticks for Aussie buyers using Sterling should consider the low 1.70’s as a buying level. The market is currently poised to go either way and with the UK struggling with uncertainty anything could change.

If you do have a requirement to change currency I’m confident I would be able to help you execute a transfer. If you would like to discuss the forecast above please feel free to email me at brf@currencies.co.uk. Working for a currency brokerage I am able to set rate alerts to make sure you’re trading at the right time at a level you’re happy with.

Political uncertainty plagues the Pound (Daniel Johnson)

Theresa May’s call for a snap election has caused severe pound weakness. Political uncertainty historically weakens the currency in question and this is definitely the main catalyst for Sterling weakness at present. Many are uncertain how the Conservative- DUP coalition will pan out and the majority of the general public are furious with the £1bn of tax payers money to be handed to the DUP in return for their votes.

The PM’s job is on the line and until we have a a stable government the pound has little chance of a recovery. As usual politicians seem to be far too concerned  with their own agenda rather than  trying to benefit the country. By ousting the  PM I would expect investors to deem this as yet more uncertainty in regards to the political situation and the pound to fall further.

Let us also not forget the Brexit negotiations, this will be a key factor in GBP/AUD buoyancy levels moving forward. Despite the rumors talks could be elongated, it is important to remember the scale of UK imports, particularly  for German cars. It will be detrimental to all involved to play hard ball with the UK.

I am still of the opinion the pound is undervalued against the Aussie. Let us remember it was not too long ago GBP/AUD sat above 2.20. Australia’s heavy reliance on the Chinese could prove to be a problem. Growth, although still impressive is still slowing in China and this has repercussions on the Australian economy. Keep a close eye on Iron ore prices, this is the largest export for Australia and has the power to influence Australian dollar value.

There is also the housing price concern, with over inflated house prices in high wage areas. Some consider this to be unsustainable, although if foreign investors are still prepared to pay the these prices it may not be the case. We only have to look at London as an example.

Overall, although Aussie dollar sellers may see further gains short term. I would not necessarily procrastinate. It is an incredible time to purchase Sterling.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference, so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavor to get back to you as quickly as possible. Thank you for reading.

AUD Boosted on Higher Commodity Prices (James Lovick)

The Australian dollar has had a good run this week having made some inroads against most of the major currencies. The support has largely come from a rise in commodity prices namely iron ore and oil. The Australian dollar which is classified as a commodity currency generally perform well when commodity prices are rising.

A key interest rate decision from the Reserve bank of Australia (RBA) next week is likely to contribute to the direction of travel for the Aussie dollar. The RBA have held interest rates at the record low of 1.5% since last August and there isn’t much sign of that changing now. Recent concerns surrounding consumer debt and also consumers who have overborrowed for property purchases are helping shape monetary policy within the central bank. It is unlikely the RBA will want to cut in fear that it will exacerbate the problem of asset bubbles. As such there is likely to be no change at the next meeting and this could see the dollar strengthen that little bit further. Clients looking to sell Australian dollars could see a small window of opportunity after the next meeting if the rhetoric remain the same.


GBP AUD should see a volatile end to the week as a result of political developments in the UK. An agreement between the conservative government and the Democratic Unionist Party (DUP) has now been made as of yesterday afternoon although the market reaction has so far been very limited.

Thursday sees the House of Commons vote on the Queens speech and this is where things could become more interesting. The vote should go through without a hitch in which case the pound is likely to rally. However Labour leader Jeremy Corbyn has said that he will try and vote down the Queens speech which cause fireworks on the currency markets if he was able to do so in this unlikely scenario.

A minority conservative government in power could help see GBP AUD break back over 1.70 in the short term. Clients looking to sell Australian dollars for pounds may wish to consider moving sooner rather than later as the political impact should not be underestimated.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Buying and selling Australian Dollar rates finally expected to re-emerge from political limbo (Joshua Privett)

The Pound has been in a very visible limbo since the inconclusive election result, with Australian Dollar buyers and sellers waiting for news on where rate trends are expected to go moving forward.

That is not to say the interim period has been lacklustre and boring. Far from it. It is simply that economics has taken over in the meantime.

This has been the saga of interest rates which has been a dominant factor in currency value since last year, with the US being the first developed country to raise interest rates since the financial crisis.

Public disagreements between the Governor of the Bank of England, Mark Carney, and members of the BOE Monetary Policy Committee over whether to raise interest rates in the UK or not has seen the Pound behaving like a yo-yo in recent weeks, but with little overall change.

The deciding factor will be the official formation of a minority Government next week, with official voting on their manifesto to go through Thursday-Friday to conclude the month of June.

The fact that any resolution seems likely to help the Pound given the hints noted recently on currency markets should be in the forefront of anyone with a Australian Dollar requirement’s thought process. The question at this point arguably is just how much the Pound will rise up against the Australian Dollar next week, and not if. 

In this context Australian Dollar buyers do not seem to have the same level of urgency as Australian Dollar sellers. You can secure exchange rates for AUD/GBP beofre interbank rates are expected rise back above 1.70 by contacting me over the weekend whilst markets are closed on jjp@currencies.co.uk. Even if your requirement is not until the end of the year, you can pre-book your currency at current attractive levels using the tools available at a specialist currency brokerage. There is not additional cost to pre-book.

I strongly recommend that if you have a currency requirement to buy Australian Dollars to contact me again on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your AUD return.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you a significant sum on a prospective transfer.

Buying Australian rates boosted by softer Brexit murmurs (Joshua Privett)

The state of limbo we’ve been suffering with Sterling this week has show tentative signs of breaking as we head into the weekend, with buying Australian Dollar exchange rates rallying during Friday morning trading.

This prolonged period without clarification on Government policy towards such a sensitive issue as Brexit has left currency investors unsure what to do. There has been such little buying and selling activity involved around the Pound that GBP/AUD has been moored in the high 1.60’s since Monday.

This should all change next week.

The Government’s manifesto will be debated on in Parliament next week to be voted on on Thursday/Friday, before the close of June. Hints of a softer Brexit with Theresa May’s speech at the EU summit today have markets less concerned at the prospect of a tumultuous exit for the UK, and therefore Sterling saw a comforting boost in the morning.

End of week financial flows however halted Sterling’s rally. At the end of the week capital tends to be allocated in the more stable currencies. A camp which Sterling understandably hasn’t occupied for some time. So you tend to see Sterling selling off in favour of the likes of the US Dollar and Swiss France, with the Pound losing out through decreased demand in general.

But if it wasn’t for these clockwork trading patterns before the weekend, AUD sellers would have seen glimpses of what is expected to happen next week. A consolidation of this limbo period since the election, and confirmation of any softer approaches for the Brexit should both play well for Sterling’s value in the eyes of currency markets. Both have a high likelihood of occurring next week, even the Brexit Minister David Davis said as much.

So whilst Australian Dollar sellers are seeing higher urgency to act sooner rather than later in the final week of June, Australian Dollar buyers may consider waiting until the end of next week to secure their AUD purchase.

I strongly recommend that anyone with an Australian Dollar based currency requirement should contact me over the weekend whilst financial markets are closed on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your currency return.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you significant sums of money on a prospective transfer.

Pound to Aussie Dollar range-bound, but where to next? (Joseph Wright)

The Pound to Aussie Dollar exchange rate has been trading between 1.66 and 1.68 for a few days now, as the pair appear to have consolidated below 1.70 in the wake of the disappointing election outcome for Sterling bulls.

As of yet there is no official agreement between the Conservatives and the Democratic Unionist Party (DUP) although speculation is mounting as to the amount the Conservatives will have to pay for the coalition, with some speculating amounts of up to £2bn.

Moving forward I’m expecting any news of the coalition to have a potential impact on the Pound to Aussie Dollar buying rate, which is where keeping in touch with us can really help as we’re able to act whenever there’s a big short term move.

Brexit negotiations are now also underway, which is another issue for the government to deal with along with the ongoing Grenfell Tower tragedy and the recent terrorist issues.

On the other hand the Aussie Dollar has been under pressure in recent weeks as the Chinese economy appears to be slowing, which is a negative for the value of AUD as the Australian and Chinese economies are key trading partners.

With both currencies coming pressure for different reasons, it could be that the weaker of the two that results in further price movement for the GBP/AUD pair.

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 exchange rates fall to a 8 week low! (Dayle Littlejohn)

Pound vs Australian dollar exchange rates have reached an 8 week low this week due to sterling devaluing and the Australian dollar strengthening. To put this into monetary terms over the last 2 weeks exchange rates have dropped 5 1/2 cents which means a 200,000 Australian dollar purchase is now £3,850 more expensive.

Starting with the Australian dollar GDP numbers have remained resilient this month, and positive business sales growth coupled with increased consumer spending has strengthened the Australian dollar. In addition the Philip Lowe (Governor of the Reserve Bank of Australia) also commented earlier in the week that the global economy is in better shape than previous years which is helping the commodity currencies. This was a surprise statement as iron ore prices continue to remain under pressure due to a slow down in China.

As for the pound the Governor of the Bank of England gave a dovish statement yesterday and confirmed the UK are not in the position to raise interest rates anytime soon even though three members of the Bank of England voted to hike rates only 6 days ago. Furthermore Brexit negotiations have begun and are putting pressure on sterling as the market is nervous about a deal being struck in regards to the divorce settlement.

In my opinion it is impossible to predict how Brexit negotiations will impact the pound. Positive news will strengthen the pound negative will do the opposite. I am optimistic that deal will be struck eventually however other traders on the floor are not. If you are purchasing pounds with Australian dollars or vice versa I would recommend getting in touch and I will keep you up to date with regular information until you are ready to convert drl@currencies.co.uk.

If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Sterling tumbles after Mark Carney Speech (Ben Fletcher)

The Governor of the Bank of England Mark Carney yesterday delivered a speech saying that he doesn’t think an interest rate hike is imminently on the cards. The comments followed a vote by the economic monetary policy committee last week where the members voted 3-5. 8 members voted for the decision and this is the first time in over 5 years 3 members have voted for a hike. The vote last week caused a jump in the market however that was lost yesterday.

The comments yesterday had an instant effect on the market causing nearly a 1% drop in the GBP/AUD rate. Since the final weeks of the UK election and the subsequent hung Parliament result the Aussie has gained nearly 10 cents in strength against sterling, moving the rate to 1.66. In my opinion I don’t see the rate returning to the 1.60 level last seen in March and any Aussie Dollar sellers should consider capitalising on the last two weeks movements.

Where Next for GBP/AUD?

Now that the Brexit negotiations have started there is potential for the markets to move at an instant. David Davis the UK’s Brexit Minister suggested the talks got off to a positive start and that he was hopeful of much of the same in a press conference earlier this week. The main market influencer will be the announcement of a trade deal between the UK and the EU, the moment that comes Sterling’s fortunes could change.

If you’re interested in finding more information about the markets I am able to assist by keeping you up to date with any market. I work for a company that has been in business for 18 years and would be surprised if I am not able to help you make a significant saving on your currency transfers. If you would like to ask any questions please send Ben Fletcher an email at brf@currencies.co.uk.

Volatility expected on GBP/AUD in the next 24hrs as government announcment expected (Daniel Johnson)

Queens Speech has potential to cause movement on GBP/AUD

Tomorrow we will see the state opening of parliament and the queens speech which had been delayed as the conservatives and the DUP thrash out a deal. The UK is currently in political limbo at present and this has been very detrimental to the pound, if we go by what is taught in economics class you would expect the pound to rally once there is a government in place. It is common knowledge that we will see a conservative-DUP  coalition and the market will have largely factored this into the current GBP/AUD rate.  What I think will have more bearing is what plans the coalition have for the country particularly regarding the brexit strategy. A change from Theresa May’s hard brexit plan could well occur, as the DUP would favour a soft border between Northern Ireland and Ireland, this would mean a move away from May’s plans of border control and a hard brexit. It is important to also note that senior members of the conservatives have threatened to challenge May’s leadership if she changes her plans on  a hard exit. If you have a currency trade to perform involving GBP/AUD you need to be in touch with an experienced broker if you want to take full advantage of short term spikes. There are a number of options to ensure any tempting peaks which emerge are not missed and if you would like me to help, be sure to get in touch in quickly so I am aware of your situation and can assist in maximising your return. My details are at the bottom of the article.


RBA Minutes gives an indication of what could influence future Australian Dollar value

The Reserve Bank of Australia (RBA) minutes  take place two weeks after the interest rate decision. They provide an account of policy discussion and also how the committee voted. This can give a real indication of what monetary policy changes can be made in the future and can influence GBP/AUD.

The minutes took place during the early hours of this morning and is was much the same as the previous meeting, interest rates were kept on hold at 1.50%. Housing and employment will be key factors in interest rate judgement as detailed in the minutes.

Data will continue to hit the wire throughout the month regarding these key indicator, affecting the value of the Australian Dollar consistently. Feel free to get in touch if you would like me to keep an eye on these releases for you, I can contact you if an opportunity presents itself.

Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the details of your trade I will endeavour to provide a free trading strategy tailored to your situation. We are authorized by the Financial Conduct Authority so you can trade with safety and confidence. Our reputation at Foreign Currency Direct is impeccable, we also offer the most competitive rates of exchange and if you have a current provider I am willing to perform a comparison and I am very confident I can demonstrate a significant saving. I look forward to being of help. I can be contacted at dcj@currencies.co.uk. (Daniel Johnson)