Tag Archives: best exchange rates

Sterling falls against the Australian dollar due to meaningful vote cancelled

In recent weeks the pound has been falling dramatically against the Australian dollar and this trend continued throughout yesterday trading session as Theresa May cancelled the meaningful vote in Parliament. Furthermore the Prime Minister made a statement about why she had cancelled the vote and the general consensus was because she was going to lose and therefore she was going back to Brussels this week for further guarantees. Following the statement in the House of Commons Theresa May answered questions from fellow MPs and the Prime Minister came under further pressure and this was represented in the exchange rates.

GBPAUD dropped throughout the day from 1.7725 to 1.7475. To put this into monetary value a AU$400,000 transfer now costs an additional £3,300 compared to this time yesterday. 

The Prime Minister has now flown to Hague to discuss Brexit with Mr Rutte, the Prime Minister of the Netherlands. Mr Rutte has been known to give an extra helping hand for the Prime Minister and this is why I believe this is her first trip. Thereafter she is set to travel to Berlin to meet to meet Angela Merkel and then hold talks with the European Commission.

If its the case the Prime Minister fails to receive further reassurances from the EU, it looks like her days are numbered. If the Prime Minister was ousted or resigns a leadership contest would take at least a couple of weeks especially over the Christmas period. therefore I expect this would put further pressure on sterling and GBPAUD would fall further.

Looking further ahead I expect the pound will continue to decline against the Australian dollar and fall to the low 1.70s or even the high 1.60s. However if the Prime Minister manages to get further concession which is extremely unlikely the pound could rebound significantly making Australian dollars cheaper to buy.

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.

 

 

GBP AUD Breaks 2 Year High (James Lovick)

The pound has made good gains against the Australian dollar this with rates for the GBP AUD pair back over 1.85. Rates for GBP AUD have now broken above a two year high creating a good opportunity for those looking to buy Australian dollars. The pound is receiving some mixed signals on Brexit although the general consensus is that a deal is within sight.

The EU are expected to offer the UK a proposal which should allow for much of the Chequers proposal being championed by Prime Minister Theresa May. It has been reported that something around 30-40% of her proposals will be granted in a deal but the stumbling block of the Irish border appears to remain. A new stumbling block has appeared in the form of the political declaration that will be made with the withdrawal agreement. Theresa May is asking for a precise agreement on frictionless trade, something the EU is reluctant to agree to. Expect considerable market volatility and opportunity as new developments unfold over Brexit.

The Australian dollar has had some of its confidence dented this week as events in China give cause for concern for global growth. The Peoples Bank of China has intervened to try and stimulate growth in China by lowering finance costs which should encourage growth. The markets are taking this as a sign that China is noticeably concerned about the prospect of a slowdown in China which is seeing funds move out of the Australian dollar. There has been a clear flight to safety away from emerging markets back to the safety of the dollar which could see further falls in the Australian dollar if the trend continues.

For more information on Australian dollar exchange rates and for assistance in timing your exchange at the best exchange rates then please feel free to contact me James at jll@currencies.co.uk

What can we expect this week for GBPAUD exchange rates?

The week ahead for the Australian dollar looks set to be dominated by continuing news on the likelihood of future interest rate hikes down under. Last week saw a mixed bag of data as investors weighed up the conflicting signals and the overall outlook on the currency pairing. This was underscored by a very positive unemployment report which helped the Aussie to rise against its counterparts. Good news on the Australian dollar has however been tempered by the worrying prospect of fresh economic tariffs from Trump on China, Australia’s main trading partner.

The main economic news this week will be the RBA, Reserve Bank of Australia Meeting Minutes and also the House Price Index released this evening. Later in the week we will also see the the RBA Bulletin and also a speech by Assistant Governor Christopher Kent. It was a speech by RBA Assistant Governor Bullock last week which saw movement on the rates as he highlighted growing household debt.

Clients with a currency transfer involving the Australian dollar could now face a range of events to move the rates, it does appear the factors which have weakened the Aussie in recent weeks, are set to remain. Global concerns over Trade Wars which are set to negatively impact China will weigh on economic sentiment and this will influence the Australian dollar.

If you have a transfer to consider buying Australian dollars with pounds there is also the EU Summit which is coming up which could see a volatile week on GBPAUD exchanges. Brexit continues to be the main driver on the pound and this information could see some volatility on the pair.

If you have a transfer to make involving the Australian dollar, we are in business to offer assistance with the timing and the planning of any currency transfers. For more information at no obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

Jonathan

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.

 

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.

 

 

Will GBPAUD fall below 1.80?

The pound to Australian dollar exchange rate could now enter a very volatile period as we get key news from both central banks in the Eurozone, United States, Australia and also the UK! This should see movement on exchange rates as the market digests any shifts or changes in monetary policy and investors shift funds around to take stock of the changes.

The pound to Australian dollar exchange rate has been rising which has seen the GBPAUD level touch some of the best rates since the Referendum 2016, this is presenting an excellent opportunity to buy the Aussie with pounds which may not last. Important economic data for the UK is tomorrow relating to GDP but what will more than likely see extensive volatility on the Aussie is global attitudes to risk sentiment.

The Australian dollar is very sensitive to global sentiments on interest rates and where the AUD had previously found itself as a very strong currency owing to its higher interest rates, the currency has lost value as other central banks become more positive about raising and indeed, do raise their interest rates.

The US interest rate is now higher than the Australian one and this has made the Australian dollar lose value against the US dollar as the US dollar becomes more attractive to hold. If you have any currency transfer buying Australian dollar the RBA (Reserve Bank of Australia) interest rate decision next week could also be a big market mover.

If you are looking to by or sell Australian dollars and wish for some insight as to what might happen in the future with any currency transfers that you will be looking to make, please feel free to speak to me Jonathan Watson by emailing me on jmw@currencies.co.uk.

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

Is the RBA’s monetary policy working, and how will this impact AUD exchange rates?

Australian interest rates have been set at 1.5% for around 20-months now. This is the longest period of time the rates have remained the same and interestingly, this is the lowest that interest rates have been in Australia.

Rates were dropped to this level back in August 2016 in order to stimulate the economy after it begun to show signs of a slowdown, and since then the RBA monthly meetings have been non-eventful. This is in stark contrast to back in 2008-2009 when the rates were changed on almost a monthly basis.

There are no changes expected for the next 6-months, which differs to the forecasts in the UK for example where the Bank of England is expected to hike rates at least once this year, with some forecasters predicting up to 4 over the next 18-months or so. The Fed Reserve in the US is pushing forward with the most aggressive monetary policy changes within the developed world, and this has negatively impacted the value of the Aussie Dollar as people are beginning to pool funds in the USD now that they can get a better return than when they hold funds in AUD.

Due to the Aussie economy not picking up much steam despite the low rates, and the RBA’s tentative approach to raising rates due to fears over an overheating house market, I think that we may see the AUD continue to lose value as the year progresses.

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.

Aussie Dollar boosted after positive Retail Sales data, where to next for AUD exchange rates? (Joseph Wright)

The Aussie Dollar has received a boost overnight after some positive economic data.

After disappointing in recent months Australian Retail Sales down under have rebounded and impressed during February. Retail Sales rose by 0.6% during the month after slumping in January and December.

Improving sales along with inflation are increasing the chances of a rate hike from the RBA, up from its record lows which is where interest rates currently sit.

The Pound has reached new annual highs against the Aussie Dollar in recent weeks after the Brexit transitional agreement has been arranged between the UK-EU negotiators. This positive news for the UK benefited the Pound along with increasing likelihood of a rate hike in May.

Now that the US Dollar offers a higher return than the Aussie Dollar, it’s not surprising to see the Aussie Dollar lose value as investors move deposits from AUD into the USD. Before the recent rate hikes from the FED Reserve bank in the US AUD had offered one of the highest returns in the developed world, but now that AUD is losing this competitive edge we’re seeing the currency lose value.

Early tomorrow morning there will be the release of Australian Import and Export data along with Trade Balance figures. If you’re planning a currency transfer involving AUD it can be worth setting up target rates in case the best trade levels are available in the early hours when we’re not in the office.

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 remains range bound…

GBPAUD exchange rates have been range bound this week despite a huge amount of shifts and changes in market sentiments over the pound and Australian dollar. The main news was from the RBA (Reserve Bank of Australia) which has seen them remaining in a no-mans land in terms of their attitude to looking to raise or lower interest rates.

If there was to be any bias it would be towards the hiking of interest rates, this was potentially something on the cards in 2018 but actually we have seen it becoming more likely to happen in 2019. Economic condition are according to the RBA not warranting any hike, since the market was widely expecting this the Australian dollar has not reacted significantly.

The next big news will be overnight with the Chinese releasing a series of Import and Export data which will see us understanding the market much better. The Chinese data is very important for the future which will be closely monitored since China is one of the biggest markets Australia sells its raw materials into.

For more information on the upcoming news and events you can contact myself Jonathan Watson directly by emailing jmw@currencies.co.uk. For clients concerned with GBAUD exchanges many clients are tracking the 1.80 mark which we have so far been unable to hit. I do expect this could happen, it might well be in the next couple of weeks as we get some further important UK data.

If you need to buy or sell Australian dollars against any currency please feel free to get in touch to discuss further the market and your options.

Thank you for reading and I hope to hear from you soon.

 

GBP/AUD remains at 1.77 after RBA opts to hold interest rates (Joseph Wright)

The Reserve Bank of Australia last night chose to keep interest rates unchanged, which was the expected outcome from economists leaving the currency markets unchanged at 1.5%.

This was the first chance the RBA had to make a change this year, and the base rate has remained at 1.5% for around a year and a half now. Many central banks have opted to hike interest rates in recent months, and should this continue it will result in the Australian interest rates being uncompetitive and therefore AUD weakness in my opinion.

Last year AUD benefited from offering one of the highest interest rates in the developed world. Investors are keen to hold funds in a high yielding currency but should AUD lose its competitive edge, it’s likely that money will be taken out of the Aussie Dollar and we’ll see it fall.

Politics also have the potential to move the GBP/AUD pair, especially at the moment as the European Union’s chief Brexit negotiator Michel Barnier is in London to discuss the UK’s plans and proposals for Brexit this week.

Those following the Pounds value should be aware of this and the potential it has to impact GBP exchange rates should any key comments be made, and do feel free to register your interest with me if you wish to be updated in the event of a major rate spike.

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.