Tag Archives: Best GBP/AUD exchange rates

Brexit uncertainty continues to hurt the Pound (Daniel Johnson)

GBP/AUD – Sterling remains fragile due to the lack of clarity surrounding Brexit and poor economic data. If there is progress in Brexit negotiations expect the pound to rally. Unfortunately very little progress is being made. The current point of contention is the Irish border deal. At present Theresa May and David Davis are unable to even agree on a back up deal if a deal on the Irish border cannot be reached. Ideally they would like to have something in place before the EU summit on 28th June. The current situation does not bode well for Sterling.

Recent data releases continue to be poor, manufacturing data this week saw the biggest fall since October 2012 and GDP came in below expectations at 0.2%. Average wage growth also saw a decline, unemployment remained unchanged, but it is important to remember that zero hour contracts are not a stable form of employment.

I am of the opinion there is little justification for a rate hike from the Bank of England (BOE) in the coming months and would be surprised to see one this year.

Thing are not all rosy down under however. Australia is heavily reliant on China purchasing it’s raw materials, particularly iron ore. The ongoing trade war with China and US is a concern. If China’s growth drops, so will the demand for Australian goods and services which will hit the Australian economy and in turn the Australian Dollar.

There are economists with the view there is the possibility of a rate hike from the RBA this year. I am not so confident.

If you are buying Aussies GBP/AUD is currently range bound between 1.75-1.80. Aim for 1.77 + if you have to move short term.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

 

Australian reaches higher levels on global confidence

The Australian has found some form as investors look to consolidate a choppy few months on the currency and seek to protect themselves for what might well be a more buoyant few weeks and months ahead. Whilst it is unlikely that the RBA (Reserve Bank of Australia) will raise interest rates anytime soon, the expectation is that the next move will be higher.

With this in mind investors are bracing themselves for future positive movements from the Australian dollar which might well serve clients much better in the future. Clients looking to buy or sell Australian dollars are finding a very interesting junction up ahead as the market struggles to make its mind up about the future direction.

The Australian dollar is seen as a commodity currency and it will rise and fall in accordance with expectations on the global economy and the global economic outlook. This is underscored by the recent developments in Italy and also the Trade Wars with China. Donald Trump has been looking to escalate the Trade wars which would have put pressure on the Chinese economy, hence weakening the Australian dollar.

However, these issues have not been as bad as many expected, therefore the Australian dollar has found some support against other currencies. With June presenting plenty of opportunity to move the currency markets, clients buying or selling Australian dollars should be bracing themselves for a busy month ahead.

If you need to make any kind of transaction in the future we are here to help with expert information and insight to help in the planning and management of any transfer. Please contact me Jonathan Watson on jmw@currencies.co.uk

Is the Australian Dollars reverse in fortunes likely to continue?

The Australian Dollar is continuing to strengthen, and put in another strong performance yesterday as sentiment surrounding the Aussie Dollar appears to be turning for the better.

There is renewed hope that the coalition in Italy will pull through after it stalled over the weekend, and this is helping push the Aussie Dollar higher as it removes uncertainty from the markets to a certain extent. There cost of commodities has also increased recently which has boosted the Aussie Dollars value, as the Australian economy is highly export driven.

I also think that now the talks of a trade war between the US and China have subsided, fears surrounding the global economy have also subsided leaving the Aussie Dollar in a stronger position. The positive moves for AUD recently can be highlighted when we consider that the Pound has lost almost 10-cents vs AUD in a short space of time.

It has also emerged that the US economy isn’t growing at the rate some economists had expected, meaning that there may not be as many rate hikes in the US as some had expected. This has boosted AUD as it could means investors will be less likely to move funds from AUD into USD in order to get a greater return.

Moving forward I expect to see AUD continue to strengthen, although further rate hikes from the US Fed Reserve later in the year could impact AUD negatively.

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.

Little reason for optimism for AUD buyers (Daniel Johnson)

GBP/AUD –  Sterling has lost significant ground against he Aussie of late. The buoyancy levels of 1.80-1.85 are gone. GBP/AUD currently sits in the 1.75’s.

This is predominantly due to Sterling weakness rather than AUD strength. There is little reason to be optimistic at present for Aussie buyers. The Brexit situation is likely to be drawn out and problematic, with votes on areas of the deal having to be passed back and forth between the House of Commons and the House of Lords for approval. Throw into the mix that many of those involved in negotiations have ulterior motives, seeking to fulfil there own agendas and Sterling could remain weak for the foreseeable future.

Economic data has also been appalling from the UK, particularly GDP which came in at 0.1%, the worst data release on GDP for over five years. The proposed interest rate hike from Bank of England (BOE) in May did not occur and I would be surprised to see one this year.

Australia is heavily reliant on China buying it’s raw materials, in particular iron ore and the US threatening to impose huge tariffs has the potential to slow Chinese growth which in turn will hit the Australian economy. China has agreed to purchase more than USD 200bn in goods and services from the US which has put a hold on the tariffs, the Aussie benefited as a result.

Current trading levels are poor for Aussie buyers, but it could get worse. I can appreciate the reluctance to trade due to the psychological aspect of trading at current levels when it was 1.84 only a short time ago, but believe me there is very little justification to get to those levels again in current market conditions.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

 

 

GBP/AUD could be set to fall further after UK inflation unexpectedly drops

Bets in favour of the Bank of England hiking interest rates in the UK this year slid yesterday, after the UK inflation data released showed a drop in the cost of living in the UK.

Markets weren’t expecting this, and the Pound’s trend appears to have reversed after losing almost 10-cents against the Australian Dollar over the last month or so.

The markets had expected to see an interest rate hike two-weeks ago today after the UK economy had been showing some positive signs, but the drop in economic growth (its fallen to a 5-year low according to the latest GDP figures) has put the brakes on these plans.

Some economists are now predicting that it may not be until November this year until the next hike happens and that will of course be determined by how the UK economy performs.

There haven’t been a lot of reasons for the Aussie Dollar strength and I think the recent price changes can be put down to the Pound’s weakness. There aren’t expected to be any rate hikes down under this year and the Australian economy has also demonstrated signs of a slowdown.

The current GBP/AUD level is trading at a 2-month low, and if you wish to be updated in the event of a spike in the price 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.

US-China Trade War Truce bodes well for the Aussie (Daniel Johnson)

Halt on tariffs benefits the Aussie

There has been an ongoing trade war between the Chinese and the US following Trump’s appointment as President. He has a thinly veiled issue with the Chinese and is highly agitated at the amount of debt the US is in to the Chinese. His mantra is “make America great again” and he took fire at the Chinese by threatening to impose tariffs that were simply unrealistic, that would be detrimental to both sides.

These tariffs would impact Chinese growth and in turn hit the Australian economy. Australia is heavily reliant on China for the purchase of it’s raw materials, particularly iron ore. If the Chinese economy suffers due to Trump’s tariff s the knock on effect will impact the Australian Dollar.

The US and the Chinese have recently agreed to put a halt to the trade war under the premise that China will purchase USD 200bn worth of US goods and services. Following this announcement the Aussie strengthened significantly. In particular against Sterling, this news along with poor economic data and a very  poor interest rate forecast from the Bank of England (BOE) has caused the pound to lose nearly 10 cents against the Australian Dollar. It was only recent we saw GBP/AUD at 1.84, we were in the 1.76s during today’s trading.

When to move?

AUD Sellers- Take advantage of current levels, 1.80 is an incredible selling price, let alone 1.76. Keep in mind GBP/AUD was 2.20 pre Brexit and the Pound is chronically undervalued.

AUD Buyers – If you have to move short term I’m afraid 1.79 should be your new target, the 1.80 resistance point has now been broken.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson

 

Wage growth puts further pressure on the RBA

This week Australia have released the latest quarterly wage growth numbers and Australian dollar sellers have been left disappointing. The consensus was for wages to have grown by 0.6%, however in fact wages had grown by 0.5% for the quarter. The poor wage growth numbers are keeping inflation beneath the Reserve Bank of Australia’s target which is directly having an impact on Australian dollar exchagne rates.

If wage growth numbers continue to dwindle along and inflation remains below the RBA target, policy makers will have no choice but to leave interest rates on hold at record lows and this is what many leading forecasters are predicting, which is no surprise. Speculators move their assets chasing higher returns of interest and with the US marching ahead and potentially looking to raise interest rate another couple of times this year investment is going to leave Australian shores and land in the US.

In regards to GBPAUD exchange rates the pound has been performing worse than the Australian dollar as exchange rates have dropped below 1.80. UK economic data has disappointing which has stopped the Bank of England from raising interest rates and the Brexit negotiations continue to weigh on the pounds value. Today UK Prime Minister Theresa May confirmed that the UK will release a whitepaper before the June summit which will outline the UK’s full position.

When the whitepaper is released this could have a clear indication about the future path of the UK and therefore GBPAUD exchange rates. If you are converting GBPAUD within the next 3 months this event should be monitored closely. 

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 the currency pair you are converting, 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.

What can we expect from the Australian dollar ahead?

The Australian dollar has been stronger as heightened concerns the US may not raise interest rates as quickly as expected triggered a rise in the value of the AUD. Investors have been buying up the US dollar in anticipation of a higher interest rate which would make the currency more attractive to hold, however, with the Australian dollar holding attraction with its higher interest rate, it remains strong.

The next big news for the Australian dollar will be next week with the latest RBA (Reserve Bank of Australia) meeting minutes which will give us the latest news from the RBA’s meeting last week. The expectation is for the RBA to be possibly looking to raise interest rates longer term, some commentators believe this could be as soon as the end of the year but personally, I do not expect anything too soon.

Investors are bracing themselves for the longer-term raise from the RBA which has helped to fuel the recent strength of the Australian dollar, overall impressions are for the currency to avoid some of the more familiar problems where it has dramatically weakened. A key driver of this volatility had been the move from the latest decision so, the next meeting will be crucial to get an idea of where Australian dollar will be headed next.

If you have a transfer buying or selling Australian dollars we can help with the planning and management of any deals with a view to securing the latest information and news when required. For more information please feel free to contatc me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for getting in touch and I look forward to hearing from you and assisting in the future.

 

Australian Dollar predicted to fall throughout 2018

Those of our regular readers hoping for a higher Aussie Dollar will be aware of how its upside is currently limited, and how the the US Dollar is partly behind the softening Australian Dollar.

The most simplistic way of looking at it, is that now the US Dollar is in many cases offering a higher rate of return than the Australian Dollar, investors are more likely to hold funds in that currency as opposed the the Aussie. Previously AUD offered one of the highest rates of return within the developed world and that resulted in a strong Aussie Dollar.

The issue now is AUD has a long way to fall if it’s to return to more familiar trade levels when we consider historical levels, which is perhaps why some predict to see it continue to fall. To put the US Dollars increased attractiveness into perspective, the US Dollar Index (which measures the US Dollars performance against a number of major currency pairs) has risen 3% since April the 16th. A clear indication of how investors are pooling funds into the currency.

The Reserve Bank of Australia on the other hand is adopting a different approach to the Fred Reserve Bank in the US. There are no interest rate changes from the RBA expected until next year, which is perhaps another reason that some economists are expecting to see the Aussie Dollar fall.

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.

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.