Tag Archives: Best GBP/AUD exchange rates

Could we see further falls for AUD? (Daniel Johnson)

Australian Dollar could be set further falls

I am of the opinion the Australian Dollar could be in for a rough time. Retail sales data recently fell to the worst levels in four years and this is predominantly due to the increase in property prices. High wage growth areas such as Melbourne and Sydney are becoming more and more expensive and Australians are being forced to spend their money on necessities rather than luxuries which is hitting the economy. Foreign investors are willing to pay the escalated prices which is not helping the problem.

FED Rate hike could mean trouble for AUD

There is also an anticipated rate hike by the Federal Reserve in the US.  The Australian Dollar is a favourite for investors due to the promises of high returns due to the attractive interest levels offered. The Australian interest rate is currently set at 1.5%, if the FED raises rates as predicted to 1.5% on Wednesday this would put Australia and the US on par. With the US Dollar considered to be a safe haven currency investors could well leave the Australian Dollar for the safety of the US dollar which could cause Australian Dollar weakness.

Unemployment Data and Mid-year Economic and Fiscal Outlook data could influence AUD

The Mid-Year Economic and Fiscal Outlook is published by Australian government, updates the economic and fiscal outlook from the previous budget. If there is a dovish tone the Aussie could suffer. This could well occur considering the dip in retail sales.

Unemployment data is due in Thursday and I expect there to be a drop slightly above the expectation of 5.5% which could cause Australian Dollar weakness.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving.  I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

Could GBPAUD break through 1.80 this week? (Dayle Littlejohn)

This week GBPAUD hit a 1 year high. Over the last three months the pound has been making considerable inroads against the Australian dollar. Exchange rates have increased from 1.62 to 1.77 and therefore a £200,000 currency transfer today compared to three months ago will generate our clients an additional AU$30,000.

The pound made further inroads against the Aussie last week when UK Prime Minister Theresa May announced that the UK are willing to pay €50bn to the EU as a divorce settlement and the EU appeared to be happy with the offer.

The UK Prime Minister Theresa May is set to meet President of the European Commision Jean Claude Juncker and President of the European Council Donald Tusk tomorrow to discuss Brexit further. The divorce settlement bill will be discussed further but a hot topic will be the Irish border.

This weekend in particular, The Republic of Ireland have stated a hard border splitting the Republic of Ireland and Northern Island is not an option and Donald Tusk has announced he would back Ireland over the UK as Ireland will remain a member of the EU.

Reports are suggesting that Theresa May’s teem believe it’s impossible to put a deal on the table for Ireland until the UK know the deal they will receive with the EU in regards to trade. Further reports Rumours suggest Mr Tusk actually agrees with Theresa May therefore I expect this topic will be put on hold on to trade discussions have begun. Therefore I expect the pound to continue to rise against that Australian dollar this week and in fact this month.

For people that buy and sell Australian dollars on a regular basis or are looking to make a one off transfer, the currency company I work for can save you money. Feel free to send me the reason for why you are converting currency, the currency pair you are trading (AUDGBP, AUDUSD), and the timescales you are working to and I will send you my forecast and the process of using our brokerage drl@currencies.co.uk.

Factors influencing GBPAUD exchange rates

In recent weeks the pound has been making considerable gains against the Australian dollar for a few reasons. The Reserve Bank of Australia more often than not have been giving dovish statements in regards to future interest rate hikes. The Governor has said that it’s likely the next decision will be to hike however this may be at the end of 2018 or even 2019.

The US federal reserve have been hinting towards raising interest rates in December which would mean US and Australian interest rate would be the same. Speculators have and will flock to the US dollar instead of the Aussie as its seen as a safer currency and therefore less risk. Less demand for the Australian dollar means it becomes cheaper to buy.

Deadline day is getting closer for the UK Prime Minister Theresa May. The EU Commission will meet on the 14th and 15th December to discuss whether trade negotiations can begin between the UK and EU. Reports are suggesting that the divorce bill and EU citizens rights could be agreed but the sticking point could still be the Irish border.

Personally I expect the Australian dollar could have a tough end to the year and major sell offs of Australian dollars into US dollars. Couple that with positive news from the Brexit negotiations, I expect GBPAUD exchange rates could push towards the 1.80 mark.

If you are trading GBPAUD this week, month or year I would recommend emailing me with the the reason for the transfer (company goods, property purchase) and your timescales and I will response with the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage, I would strongly recommend you compare rates as I am confident I will be able to offer you additional savings with your transfer. All you need to do is email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

 

Australian dollar is much weaker and could get even weaker! GBPAUD and EURAUD forecast

The Australian dollar is much weaker overall as concerns grow over the strength of the Chinese economy and also other currencies become more favourable to hold. The expectation is that for the Australian dollar and the Reserve Bank of Australia there will be no interest rate rise any time soon and this will see the currency weaker.

The Australia dollar is a beneficiary of improved global confidence particularly in China. China is a major economy and the strength of the Australian dollar is widely attributable to the strength and weakness of the Chinese economy. Overall impressions for the future centre around a weaker Chinese economy as evidenced by the concerns over the stock market in China which has a large public following

Concerns about the possibly negative outlook on the Chinese economy has troubled the market and this has seen Aussie weaker as a wider reflection of stability in the region.

With sterling finding much favour as the UK government makes gentle progress on Brexit and the Euro also finding form on the back of progress with German coalition talks, GBPAUD and EURAUD have both risen hitting 1.7556 and 1.5697 on the interbank rates. This is presenting excellent fresh opportunities on both currency pairs which should be monitored very closely for potential buyers.

If you have a transfer buying or selling Australian dollars, global events are increasingly driving the Aussie exchange rates, as opposed to domestic news in the Australian economy. Trying to anticipate and monitor the current outlook is no easy feat but it does seem like for now the Aussie will remain weaker.

Longer term trends could easily see the Aussie regain back these losses but for Aussie holders this could prove an expensive gamble. For more information at no cost or obligation please don’t hesitate to contact me Jonathan Watson by emailing jmw@currencies.co.uk.

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

Will GBPAUD keep on rising?

The pound to Australia dollar rate has been moving higher on the back of the latest improving economic data for the UK and fresh fears over when the RBA (Reserve Bank of Australia) will raise interest rates. We could see the Federal Reserve in the US raising rates which has been a big driver on Australian dollar exchange rates. The strengthening of the US dollar has seen a weaker Australian dollar as they are closely linked.

Any weakening of the Australian dollar lately can be partly attributed to the scaling back of interest rate expectations for the Australian economy. Overall the predictions for the Australian economy had been very strong and this had seen the Aussie stronger. This has been scaled back recently with the Aussie weakening as the RBA scaled back their forecasts.

The US dollar is also a factor as it has been rising, it is looking more than likely that the US will raise their base rate which will see the US dollar stronger. As a higher yielding currency the Australian dollar has been very popular but now the US dollar is challenging its dominance. The market is now bracing itself for lower for longer Australian interest rates which is why the currency has weakened.

with sterling finding some support this trend could continue for longer, the conditions that have created it don’t appear quite ready to subside. For now it appears this market will favour Aussie buyers and any clients looking to sell Australian dollars for pounds might need some assistance with strategy.

If you have a transfer to make buying or selling Australian dollars then please don’t hesitate to let us know so that we can monitor the market and update you on the latest strategies to be aware of in trying to maximise your transfer. If you wish for more information please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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

 

 

Australian wage growth disapoints

In the early hours of the morning Australia released their latest wage growth numbers for the last quarter, and the Australian dollar lost value as the numbers disappointed.  This release has the potential to now influence the next round of inflation and consumer spending which again could cause problems for clients holding onto Australian dollars.

The US have also released important data today in the form of Consumer Price index also known as inflation. The inflation numbers rose to 1.8% from 1.7% and I believe this is the last nail in the coffin and the Federal Reserve will hike interest rates on December 13th.

In recent years currency speculators appear to bounce between the Australian dollar and US dollar, as the Australian dollar returns high interest on investments and the US dollar is a safe haven currency.  If the Federal Reserve raise interest rates US and Australian interest rates will both be 1.5% and I therefore expect to see a major sell off of Australian dollars to buy US dollars.

Therefore clients buying the Australian dollars may receive improved rates in the months to come, where as Australian dollar sellers may wish to buy their currency sooner rather than later. 

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.

 

Will GBPAUD break through 1.75 by the end of the year? (Dayle Littlejohn)

Economic data in recent weeks has meant that GBPAUD exchange rates have increased by 8 cents and broken through the 1.70 barrier. The reason for the improvement is positive news coming from the UK in regards to Brexit and a dovish outlook from the Reserve Bank of Australia.

Brexit negotiations are heating up and decisions are close to being made. Friday evening Michel Barnier gave a two week deadline for the UK to make key decisions surrounding EU citizens’ rights, the Irish border, and the UK’s “divorce bill”.

The theory on the market is that if the UK and EU come to an agreement in the upcoming weeks and trade negotiations start before or just after the turn of the year, this could give sterling exchange rates a considerable boost.

The Reserve Bank of Australia have been given dovish statements of late and the recent RBA minutes last week confirmed that the RBA have no interest of raising interest rates anytime soon.

Couple this with Iron ore prices tumbling down under and some forecasters suggesting another substantial fall is on the horizon due to the slowdown in China’s construction industry you can understand why the Australian dollar is under pressure.

Looking further ahead if the Australian economy continues on the same path and the UK reach a deal with the EU so trade negotiations begin, I expect GBPAUD will break through 1.75.

Therefore if you are buying Australian dollars with sterling and are prepared to take the risk holding off may provide a better exchange rate in the weeks to come, however if you are selling Australian dollars to buy sterling now is the time to convert your currency.

For people that are converting pounds and Australian dollars for the first time, it is essential that you get the very best exchange rates. If you have used a brokerage for many years or have been referred a brokerage I strongly recommend you compare rates to make sure you get the best price possible and therefore save money. This simple exercise takes two minutes and in the past I have saved clients hundreds and in some instances thousands of pounds.

My direct email is drl@currencies.co.uk Dayle Littlejohn.

UK economy growth is picking up, will GBP/AUD reach 1.75 again in the near-term future?

The Pound has picked up once again this afternoon after some better than expected economic data, this time in the form of GDP figures has boosted the markets.

This means that UK economic output in the months of July-September grew by 0.4% whereas it’s grown by 0.5% from August-October. This is of course positive news for the Pound and the Pound is now trading around the 1.7250 mark at the time of writing.

The highest the GBP/AUD rate has traded in the last year is 1.7650 so the rate is now within 4 cents of the best levels so it appears that the rate hike last week from the Bank of England has boosted sentiment surrounding the UK economy.

The think-tank that produced today’s GDP figures also believes that the Bank of England will have raised interest rates to 2% by 2021 which is a bit more bullish than the comments outlined by the BoE last week when rates were hiked, and I think that the Pound would climb quite considerably from its current levels should such a bullish monetary policy be adopted by the BoE.

The next busy day for economic data is Tuesday next week, so feel free to get in touch in the meantime if you would like to plan around this event, should you have any upcoming currency requirements.

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.

RBA Interest rate decison (Daniel Johnson)

RBA keep Rates on hold

During the night we saw the Reserve Bank of Australia (RBA) interest rate decision. Rates were kept on hold at 1.5%, this was anticipated so id did not have a significant impact on Australian dollar value. The market moves on rumor as well as fact, volatility is created when things don’t go according to the general consensus.

Interest Rate Forecast

I would expect interest rates to remain at these levels for the foreseeable future due to the situation with the Australian housing market and Chinese growth. Housing prices in Melbourne and Sydney are well above the national average due to the higher wages being offered in the cities. This is all very well, but when you have foreign investors buying the properties unconcerned with the inflated process we are starting to see a housing bubble start to emerge. A very similar situation to London, a bubble that can not afford to burst.

There is also Australia’s heavy dependence on the Chinese to purchase their raw materials. Iron ore is Australia’s primary export and as such it’s price can influence Australian Dollar value. Despite Chinese growth still being healthy it is by no means as strong as previous years which is worrying considering Australian’s heavy reliance on the Chinese. It is wise to keep an eye on both Chinese growth data and Iron ore prices if you are considering trading Aussie.

During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor 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 

GBPAUD crashes below 1.70 (Dayle Littlejohn)

At the end of last week the eagerly anticipated Bank of England interest rate decision provided a huge shock for clients buying Australian dollars. The Bank of England hiked interest rates to 0.5% and forecasters were predicting the pound would continue to climb against the Australian dollar and potential reach the mid 1.70s.

However as the hike was seen as ‘dovish’ because two of the members of the Bank of England voted to keep interest rates on hold and growth forecasts for next year were cut, the pound plummeted against the Australian dollar. The next question is will the pound recover and break through 1.70 once more or have Australian dollars buyers missed their opportunity.

Inflation numbers down under remain under pressure which means the likelihood that the Reserve Bank of Australia will change their tune in regards to interest rates is unlikely. Therefore I expect the Australian dollar to remain under pressure.

Brexit headlines will continue to drive GBPAUD exchange rates. Negotiators have announced that there will be three more rounds before the turn of the year and UK Prime Minister Theresa May will be hoping that stage 2 negotiations would have begun. If this is the case I expect the pound would have broken through the 1.70 barrier and actually progressed closer to 1.75. Therefore if I were selling Australian dollars to buy pounds I would take advantage of the recent movement and look to make the conversion sooner rather than later.

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! **