Tag Archives: Best GBP/AUD exchange rates
GBP/AUD When to move? (Daniel Johnson)
Is there still a rate hike still on the cards form the BOE?
We have seen Sterling fall in value against the Aussie of late following poor retail and inflation data. There was a host of positive data before this including a significant increase in average wage growth and unemployment hitting a 43yr low. We also have a transitional Brexit deal all but agreed with the UK being granted single market access until full exit from the European Union.
It was almost nailed on there would be a rate hike from the Bank of England (BOE) in May. Inflation slowed however, falling below average wage growth and retail sales was predicted to come in at -0.5% in at arrived at a shocking -1.2%. Mark Carney spoke on the BBC following the retail figures and said there is the possibility of monetary policy change, but did not mention May. The markets were fairly stagnant following the data release, but Carney’s words or lack of them caused Sterling to weaken against the majority of major currencies.
Despite this a rate hike is already factored into current levels, if the hike occurs do not expect a huge movement in the pound’s favour, the market moves on rumour as well as fact. The danger is if there is no hike. The pound will lose significant value. It is always worth keeping an eye on Carney’s speech after the rate decision as any hint at a change in monetary policy can cause volatility.
I am of the opinion Sterling is chronically undervalued ant that we are only seeing current levels due to the uncertainty surrounding Brexit. AUD has been considered an investors choice due to it’s high levels of interest, but now with the USD promising higher returns and further rate hikes combined with it’s reputation as a safe haven currency it is almost a no brainer to move to the US Dollar. I doubt the Reserve Bank of Australia (RBA) will raise rates until 2019 at the earliest.
There is also the ongoing trade war with the US and China. The new tariffs could hit Chinese growth which will in turn hit the Aussie as Australia is heavily reliant on China purchasing it’s raw materials, particularly iron ore.
I personally think short to medium term GBP/AUD will be stuck between buoyancy levels of 1.80-85.
If you are an AUD buyer and have to move short term, aim to move in the 1.84s.
AUD sellers, I would not hang on for significant gains as I feel the Aussie is fragile. Aim for 1.82 on Interbank.
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.
Sterling suffers against AUD (Daniel Johnson)
Poor inflation and poor Retail Sales data could push back BOE rate hike
We have seen very positive news from the UK of late. We have had UK unemployment come in at a 43yr low, a rise in average wage growth and previous retail sales figures came in at 0.8%, well above the expected 0.4%.
We have also recently had news that a Brexit transitional deal has all but been agreed, with the UK having access to the single market until full exit.
GBP/AUD moved as high as the 1.84s. We have seen the Pound take losses over the last few days however. It first took a hit following a fall in inflation pushing away the probability of a rate hike from the Bank of England (BOE) in May. Inflation has now fallen below average wage growth which some may deem as positive, but if people are making more money and not spending it, it does not bode well for the UK economy.
Yesterday there was a sharp fall in retail sales. There was predicted to be a drop from 0.8% to – 0.5%, but they landed at a shocking – 1.2%. The markets remained muted, which surprised me as this surely brings into question a rate hike in May. There was little Sterling weakness.
It was a dovish speech from the Head of the BOE, Mark Carney to convince investors the hike could be put off until later in the year. The pound weakened as a result.
Despite this I still feel the Aussie is fragile. With no hikes planned by the Reserve Bank of Australia (RBA) this year and the US dollar proving to be far more attractive to investors due to higher returns and safe haven status I am not convinced we will see GBP/AUD drop below 1.81. If I was an Australian Dollar seller buying the pound I would take advantage of current levels. Aussie Buyers aim for the 1.84s, 1.85 is proving to be a firm resistance point.
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.
Pound to Australian Dollar rate trading at annual high, will the pair now climb higher? (Joseph Wright)
The exchange rate for changing Pounds into Aussie Dollars has traded within half-a-cent from its annual high today, as the almost hit 1.85 again during today’s trading session.
As many of our regular readers will be aware, sentiment surrounding the Pound has improved quite considerably recently after roughly a month ago the UK and EU Brexit negotiators came to an agreement regarding the Brexit transitional deal. This was a topic that limited the Pound’s value prior tot he agreement, as there were concerns that there would be a Hard Brexit which most likely would’ve resulted in a weaker Pound due to the shock to the UK economy.
Now that there is likely to be an interest rate hike from the Bank of England next month, sentiment is improving as the UK economy is showing signs of picking up, even if the Brexit has slowed the economy somewhat.
Moving forward, I wouldn’t be surprised to see the Pound climb from its current levels as I think AUD will continue to lose value throughout the year. Now that the Fed Reserve has begun hiking interest rates in the US, AUD is likely to lose some of its attractiveness as it will no longer be offering one of the highest interest rates within the developed world. At the same time trade tensions between the US and China are likely to limit upside for AUD in my opinion.
There are expectations that the Reserve Bank of Australia will increase interest rates to 1.75% at the end of this year, although up until this stage the RBA has been skeptical due to the overheating property market down under, particularly on the East coast. With the RBA being weary of the effects this could have on the Australian economy, I think they will leave it late before making an amendment.
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 GBPAUD rates rise or fall in April?
The pound to Australian dollar exchange rates has been improving overnight as the Australian dollar suffers regarding some slightly worse than expected Chinese economic data. The Aussie has been on the backfoot in recent weeks as investors lose faith in the currency and find better returns elsewhere.
If you have a transfer to make in the future buying Australian dollars then the outlook is looking better as the expectation for the Aussie is that it will continue to weaken in the future. Markets are bracing themselves for a continuing deterioration of the Australian dollar as the US dollar becomes a more attractive currency to hold.
US interest rates rate have been rising which is making it very attractive to hold, investors would rather hold the US dollar than the Aussie at the moment as it is seen as a safer and less risky currency to hold. The Reserve Bank of Australia (RBA) are in a process of holding off making any decisions on interest rates which has seen the currency weaker. The UK too are in a process of raising interest rates which is leading to much-improved levels for the pound.
Essentially the pound and the US dollar are being made to be more attractive to hold than the Australian dollar which has seen the GBPAUD rates rising. They may well improve further in the future, we will have to wait and see exactly what happens with various factors globally, not just concerns in the UK and Australia.
If you have a transfer to make in the future understanding the market and all of your options in advance is key to getting the best rates of exchange. Part of our service is to assist clients with the timing and execution of any currency exchanges, please contact me personally if there is anything you wish to run through or discuss in the future.
Thank you for reading and please email jmw@currencies.co.uk to discuss further.
GBP/AUD – Is there the chance for further gains for the Pound? (Daniel Johnson)
Are we now witnessing new Buoyancy levels on GBP/AUD?
Sterling has advanced considerably against the Aussie of late due to several contributing factors. UK retail sales was impressive, figures sat at – 0.2% and were predicted to land at 0.4%. They came in at 0.8%. We also saw UK average wage growth move closer to parity with inflation which is a sign of a very healthy economy.
There was already the strong possibility of an interest rate hike from the Bank of England (BOE), but these date means it is almost a certainty.
It has also been confirmed the UK will have access to the single market during the Brexit transitional period which will relieve a great number of UK firms.
On the back of this GBP/AUD went as high as 1.85, but quickly retracted. I am of the opinion this will be a new resistance point on GBP/AUD so if you are an AUD buyer and you have to move short term I would consider moving in the 1.84s.
The Aussie is losing its attraction to it’s investors due to the US now offering higher returns and future rate hikes. I am of the opinion the hike by the Federal Reserve however are already factored into current levels.
Be sure to keep an eye on Australia’s primary export, Iron Ore. china is the main purchaser and the current trade war with the US could well influence AUD value.
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.
Inflation could delay rate hike from the RBA (Daniel Johnson)
RBA Rate Hike stalled by inflation
Philip Lowe, Governor of the Reserve Bank of Australia (RBA) has recently suggested that a hike in interest rates may not occur until 2019, citing struggling inflation as the reason for holding fire on a hike. This does not bode well considering the US Dollar is considered a safe haven currency and currently offers the same return as the Australian Dollar. The forecast for hikes from the Federal Reserve is that there could be as many as three, which would make the Aussie considerably less attractive to investors.
On Tuesday Home Sales figures are released. New Home Sales is a key barometer as to the health of the housing market and can give an indication as to what is expected in the future. If there is a high reading above expectations we could see Australian Dollar strength.
Keep a close eye on Iron Ore Prices
If you have a trade involving the Australian Dollar it is always wise to keep a close eye on Iron Ore prices. Iron Ore is Australia’s primary export and fluctuations in price will alter the price of the Australian Dollar. With the Chinese being the main purchaser of Iron Ore it may also be shrew to keep an eye on growth figures from China.
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.
What factors could push the Pound to Aussie Dollar rate above 1.80 this year? (Joseph Wright)
The Pound to Aussie Dollar rate has been hovering just below the 1.80 mark for some time now, and although the GBP/AUD pair appear to have consolidated between 1.75 and 1.80 the pair are yet to properly test the 1.80 threshold.
AUD has been boosted in the early hours of this morning after the Reserve Bank of Australia’s minutes from their latest interest rate decision were announced. The RBA remains positive focusing on wage growth and a pick-up in the global economy moving forward which could lead to a rate hike from the RBA later in the year.
The topic of a rate hike in Australia is likely to be key moving forward as a number of other major economies have begun hiking rates now. AUD had previously benefited from having some of the highest interest rates available in the developed world but as other currencies now offer similar returns AUD has lost its appeal somewhat, and this issue is what could give the Pound a chance of gaining on AUD pushing the GBP/AUD above 1.80.
JP Morgan recently offered their opinion on the Aussie Dollars prospects and suggested the currency could fall as weaker commodity prices and monetary policy divergence put pressure on the AUD’s value.
There is an important data release out this morning from the UK in the form of Average Earnings data. This is key because the figure has disappointed recently and struggled to keep up with inflation levels which had previously made the BoE hesitant to hike interest rates. Should wages have increased over the past 3-months the chances of a rate hike are improved so I would expect to see a jump in the Pound’s value should this be the case.
Planning around events such as these can prove beneficial, so do feel to get in touch to discuss any upcoming transfers you plan on making.
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.
