Tag Archives: australian dollar

GBP/AUD hits lowest level in 10-days as Brexit issues weigh on the Pound

The Pound to Aussie Dollar exchange rate has fallen to its lowest levels of the past 10-days. This has happened after GBP/AUD hit an annual high of just over 1.87 last week, which was also the highest level since the major drop in June of 2016 when the Brexit vote outcome was announced.

Sterling had hit such high levels against AUD as hopes of a Brexit deal being agreed shortly were high. These hopes are now fading and GBP exchange rates have softened across the board of major currency pairs as it now look likely that UK and EU negotiators will not be able to agree on the terms of the Brexit deal by the EU’s deadline.

Later this week there will be an EU Summit in Brussels and the main focus is expected to be the Brexit. UK Prime Minister, Theresa May will give a speech to the EU leaders regarding her plans and the progress made so far. There will also be meeting behind closed door’s that she isn’t invited to, and depending on the outcome of the recent negotiations and the EU Summit this week I think there could be movement for the GBP to AUD rate.

The Aussie Dollar hasn’t lost a dramatic amount of value against the Pound as markets will still be holding out for a Brexit deal by November, but seeing GBP/AUD drop over the past few trading days is worth considering for those of our clients planning on making a transfer.

From the Australian side there will be Employment data out of Thursday at 1.30am UK time. If you wish to be updated in the event of a major market movement 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.

 

Outlook for Pound Sterling vs the Australian Dollar rates and could we see 1.90 before the end of this month?

The Pound vs the Australian Dollar has seen some very positive movements over the last few weeks and this has caused GBPAUD exchange rates to hit the best level to buy Australian Dollars with Pounds for over two years when the Brexit vote took place in June 2016.

The Reserve Bank of Australia has warned of the risks that the Australian economy is facing over the issue of the trade wars between the US and China and at the moment this issue is still rumbling on with no signs of dissipating.

Chinese stock markets have fallen by over 20% in the year to date and as China is such a large trading partner for Australia any signs of a slowdown can really harm the value of the Australian Dollar and this is one of the reasons for the weakness of the Australian Dollar recently.

Signs coming from the Brexit talks are that things are getting relatively close to reaching a conclusion and it appears, at least for the moment, that a deal may be reached fairly soon which has helped to support the Pound vs the Australian Dollar.

Brexit secretary Dominic Raab is due in Brussels on Monday and hopes are that he is there to try and tie up a deal but I cannot see this happening just yet.

Indeed, the EU summit will be held on Wednesday for two days and there is a hope that a deal may be reached and if so we could see a very volatile period coming up for anyone thinking about moving Sterling either to buy or sell Australian Dollars.

Following this summit there is another meeting planned for November and I think this is when a deal between both the UK and the European Union will be reached and this could give Sterling the momentum it has been looking for to continue upwards vs the Australian Dollar.

If you have a large currency exchange to carry out in the coming days, weeks or months involving Australian Dollars 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

GBP AUD ahead of Conservative Party Conference (James Lovick)

The Australian dollar has come under a degree of pressure of late as trade war concerns continue to weigh heavy on the Aussie. The cooling property market down under with considerable falls seen in both Sydney and Melbourne are also attracting concerns from the Reserve Bank of Australia. While the markets are not expecting a property market crash bearing in mind the falls in house prices appear to be coming from two cities, the central bank will nonetheless be in no hurry to raise interest rates which could potentially slow growth.

Rates for GBP AUD are currently sitting at 1.8140 and the two biggest drivers for the pair will be Brexit and the ongoing US trade war with China. The Australian dollar is negatively impacted by the global uncertainty for a slowdown in global growth especially considering that China is such a major export market for Australia.

UK Prime Minister Theresa May was in New York yesterday speaking on Brexit as she tried to reassure business that a deal between Britain and the EU will be reached.

UK Gross Domestic Product figures are released tomorrow morning although the central focus in my opinion will be on the Conservative party conference this weekend. With so much to negotiate in these Brexit negotiations and the difficult task that Theresa May has in finding a deal that will work for the EU but also one that she can get through in parliament then there is considerable risk for the pound over these next two months.

An agreement is expected to be found although any clues as to whether the Chequers deal will fly or if another Canada type trade agreement takes preference will inevitably have a direct impact on the price of sterling exchange rates. With splits in the cabinet over a softer or harder Brexit then this conference in my opinion could give new direction for the price of sterling.

For assistance in transferring Australian dollars at the best exchange rates then please contact me James at jll@currencies.co.uk

Brexit Clarity could cause further gains for Sterling against AUD. (Daniel Johnson)

GBP/AUD – We have seen Sterling strengthen over the Australian Dollar of late, breaching the 1.80 resistance point and remaining above it. One of the main catalysts is positive news on Brexit. Chief EU Negotiator, Michel Barnier stated recently that he believes it is realistic that a Brexit deal could be in place in 6-8 weeks. It has also been revealed that there maybe a solution to the Irish border. There maybe the opportunity to use technology to solve the problem using barcodes on shipping containers to verify where goods have come from and where they are going to.

The Australian economy does have it’s own worries however. Australia is heavily reliant on China purchasing it’s exports, with China engaged in a trade war with the US this will hit Chinese growth which in turn will hit the Australian economy. With global economic uncertainty causing investors to seek safer haven investments the Australian Dollar is not as popular as it once was. The US Dollar is the destination of choice offering the highest 10yr bond yields for several years and there is the prospect of further rate hikes from the Federal Reserve this year.

There is also problems with consumer spending. High wage growth areas are becoming increasingly more expensive which is forcing Australian’s to spend there funds on necessities rather than luxury goods.

I feel Sterling could be set for further gains against the Aussie, but be wary as Brexit talks intensify we could see volatility. If you are buying the Aussie short term aim for high 1.83s, possibly 1.84. I feel 1.85 will be difficult to breach unless we receive firm news on Brexit.

If you have a pending currency transfer let me know the details of your trade I will endeavour to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

Could we see further gains for Sterling against the Aussie ? (Daniel Johnson)

GBP/AUD – Sterling has made gains against the Aussie of late following a statement from chief Brexit negotiator for the EU, Michel Barnier. Barnier said that it is realistic that a Brexit deal could be in place in 6-8 weeks. Following the announcement we have seen GBP/AUD hit 1.83.

There are also concerns from down under which was another catalyst for the Spike.  Australia is heavily reliant on China purchasing it’s exports and if there is an impact to the Chinese economy it can have repercussions on Australia. The ongoing trade war between China and the US is an example of this.

China have vowed to match the US Dollar for Dollar on tariffs and both sides are preparing further tariffs. As the war escalates investor confidence in the Australian Dollar is waning. During times of global economic uncertainty investors seek out safe haven investments with solid returns.

The US Dollar is the destination of choice, 10yr bond yields are currently the highest for years and there are also expected to be further rate hikes by the Federal Reserve this year.

There is also the problem of living costs. Many seek to live in high wage growth  areas such as Sydney or Melbourne. Housing prices in these area are proving overly expensive and Australians are being forced to spend their hard earned money on necessities rather than luxury goods which is hurting the Aussie.

Although the lack of Brexit progress is holding back the pound I think the Aussie is one of the few major currencies we could see further gains.

If you have a currency requirement I would be happy to assist. If you wish to maximise your return it is important to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a trading strategy to suit your needs. If you have a currency provider in place I am willing to perform a live comparison and I am confident I will be able to demonstrate a considerable saving. It will only take a couple of minutes and could be well worth your while.
You can trade in safety knowing your trading with Foreign Currency Direct PLC, a company trading for over 16 years. Our accounts are published online at companies house and we are FCA registered.

If you would like my help I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you.

Australian Dollar Boosted on Strong Growth Report (James Lovick)

Australian Gross Domestic Product (GDP) numbers released yesterday have helped support the Australian dollar after a strong number was produced. GDP rose by 0.9% which was higher than expected due to higher consumer spending which is lending support to the dollar. On an annual basis the figures have highlighted the fastest growth since 2012. Whilst the data presents a positive outlook the implications of the current trade wars are unlikely to have yet been realised.

Chinese import and export data this weekend could see a big market reaction for the Australian dollar. With heavy trade tariffs imposed on US and Chinese imports there are fears this could filter through into the wider global economy. Any signs that China’s economy is slowing down could see the Aussie come under renewed pressure. The trade wars between these two superpowers show no signs of easing at this time and so the outlook for the Aussie looks less stable. There is a high chance this could hamper the Aussie going forward with room for a sizeable drop.

GBP AUD

Rates for GBP AUD have seen a boost higher this week with rates jumping higher to 1.80 for the pair. In fact the pair has risen by around 7 cents since the beginning of August creating a good opportunity for those clients looking to buy Australian dollars. The pound was boosted against the Australian dollar yesterday on reports that Germany and the UK were softening their stances with regards wording for the withdrawal agreement although this proved short lived.

Politics and Brexit are the number on driving force for GBP AUD and now that parliament has resumed after the summer recess then these next few months will be paramount in the future direction for the pair. I am expecting a hugely volatile few months and with this come opportunity for buyers and sellers alike.

For more information on the Australian dollar and how to make the most of any market movement when either buying or selling Australian dollars then please feel free to contact me James at jll@currencies.co.uk

Will the Australian Dollar continue to weaken, and what’s causing the weakness?

The Aussie Dollar is under pressure at the moment, with the currency hitting a 20-month low against the US Dollar earlier this week which has hit the headlines. This most recent drop off was spurred by a number of major Australian banks such as Westpac, Suncorp and Adelaide Bank have all increased their mortgage lending rates.

The ongoing saga surrounding the US and Canada’s North American Free Trade Agreement has also weighed on the Aussie Dollars value as sentiment surrounding the emerging markets has waned, after the talks between the US and Canada didn’t result in an agreement. The South African rand has also lost a lot of value recently for similar reasons.

No interest rate hikes are expected from the Reserve Bank of Australia until at least this time next year, and with US interest rates now higher than Australia’s the currency has lost a competitive edge which is another reason for the AUD weakening.

Moving forward I’m expecting to see the issues between the US and Canada as well as the issues with China to continue to weigh on the Aussie Dollar’s value. This is because of the Australian economies dependence on a strong global economy especially as the country becomes more service based.

This week there are a few further data releases that will provide us with an overview of the Australian economy, as trade Balance figures are released tomorrow and Home Loan Figures will be released on Friday.

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.

Political turmoil drives the Aussie!

The Australian dollar has really weakened this week as investors struggle to make sense of the uncertainty present in their current political situation. The current Prime Minister is now Scott Morrison, after the ousting of Malcolm Turnbull. Interestingly, the Australian has risen today as the news has settled the immediate uncertainty of a leadership contest.

The Australian dollar had been rising on the improved economic outlook for Australia, investors were backing the RBA, Reserve Bank of Australia to raise interest rates in the future but it really is likely to be longer term. In particular this uncertainty over the economic outlook could prove very damaging for interest rates as investors shy away from making any key decisions with the uncertainty present.

The big question now is whether Mr Morrison can hang on to the position or will he have to call an election to justify his position? Any signs of an election or the actual announcement of an election down under would see the Australian dollar much weaker, clients looking to buy or sell Australian dollars could find themselves in a volatile market if this happens.

The Australian dollar has also risen today on the expectations that there has been progress with Chinese trade talks which might have previously seen the Australian dollar weaker. Whilst the trade wars are bad news, the expectation that they will not massively deteriorate and see huge damage to the Australian economy might help the Australian dollar.

Finally, events concerning Donald Trump should also be a market mover on the Australian dollar, you never quite know what Donald Trump will do or say which can move rates! Lately, the weaker US dollar we have seen has helped the Australian dollar to rise. Further woes and concerns surrounding Donald Trump and his government could lead to a stronger Australian dollar.

For more information on the best rates and strategy to move money internationally at the best prices, please speak to me Jonathan Watson by emailing jmw@currencies.co.uk

Downward trend for GBP/AUD continues, is a move towards 1.70 now a possibility?

The Pound to Aussie Dollar exchange rate has been weakening ever since hitting its highest level of the year back in April of this month. Back then the rate was 1.8450 and at the time of writing the rate has since dropped to levels 10-cents lower than this.

This price movement can be attributed to a number of reasons, with Brexit uncertainties perhaps at the top of the list. When the Pound was trading at its 2018 high vs the Aussie Dollar this was back when there appeared to be a clearer Brexit plan along with expectations of interest rate hikes. Since then although there has been a rate hike the Brexit plan has become unclear with infighting amongst the current government, a number of key resignations and also the probability of a ‘No Brexit Deal’ overtaking the chances of a deal being in place when Brexit begins next year.

AUD exchange rates have also benefited now that US – China trade talks have eased, as Australia is likely to be negatively affected if a trade war heats up and global trade slows. The close proximity to China is another reason for AUD sellers to be weary of this topic as China is also Australia’s biggest trading partner.

Moving forward Brexit is likely to be the biggest market mover for the pair, although there are economic data releases that can influence the rates. This week at 9.30am UK time there will be the release of Public Sector Net Borrowing cost for July. This figure will be out of the UK and an increasing figure on the previous one is likely to result in a downward movement for the Pound.

Also on Tuesday is the Reserve Bank of Australia’s Minutes report which could also result in market movement. There are no interest changes expected from the RBA until next year, but expect any allusions to result in market movement.

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.

 

Pound makes gains vs the Australian Dollar after Turkish issue and UK inflation data due out (Tom Holian)

The Pound has made some gains vs the Australian Dollar over the last few days and the move appeared to happen following the news in Turkey that Donald Trump has imposed an addition to tariffs on both steel and aluminium on Turkey and this started to cause huge problems in the country.

The Turkish Lira has dramatically weakened in value over the last few days and this has caused a number of commodity based currencies to weaken as global investors have sold off riskier based currencies including the Australian Dollar.

After briefly flirting with rates in the 1.73 levels recently the Pound vs the Australian Dollar is now back to trading above 1.76.

Meanwhile, the Reserve Bank of Australia confirmed recently that it will be keeping interest rates on hold while it waits for economic growth to improve and this has also helped the Pound to make gains vs the Australian Dollar and the Australian Dollar is now at its lowest level vs the US Dollar in two years.

The RBA does not appear to be too concerned with the value of the Australian Dollar and because it is a big export market if the AUD continues to weaken then this could help to improve economic growth in Australia.

The UK and the Pound has had a good start to the week against a number of different currencies with the news that UK unemployment is close to its lowest levels since 1975 with the figure now sitting at 4%.

We could be in for further movement later this morning with the release of UK inflation data due to be published at 930am.

Inflation has been a big factor in the Bank of England’s recent decision to increase interest rates and with the data expected to show 2.5% year on year which is above the 2% target then this could provide further evidence in support of further rate hikes in the UK which could help to move GBPAUD exchange rates in an upwards direction.

If you would like a free quote or further information about how to save money compared to using your own bank when converting Australian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk