Tag Archives: buy Australian Dollars

Aussie slightly lower on RBA comments, where next for GBPAUD exchange rates?

The Australian dollar is a little lower this morning as the Reserve Bank of Australia Governor Philip Lowe reiterated that Unemployment was a key factor in any decision to raise interest rates and that for now rates would ‘remain steady’ at 1.5%. The raising and lowering of interest rates is a huge factor driving exchange rates and these comments alongside global events have seen the Aussie a little softer. If you are buying or selling Australian dollars then making some plans around future trends is key to securing the best rates.

Global events are always something to bear in mind with the Australian dollar but more so at present. With the Australian dollar benefiting and suffering as global sentiments on markets rise and fall the latest developments with North Korea and the US dollar are key. Essentially the US dollar is rising because investors are concerned about the prospect of a nuclear war. As the Australian dollar is used by investors because of its high yield (higher interest rates) in times of uncertainty likes this investors will pull their funds and look to invest in ‘safer’ shores, eg the US dollar.

At present this is not overly pronounced, we are only talking a couple of cents off the more recent levels. However any deterioration in the North Korean situation could easily the AUD lose value sharply. There is some important US economic data due at 13.30 UK time today which might lead to some swings on USD/AUD which would in turn influence GBPAUD exchange rates.

All in all I expect the pound to continue to struggle but in the absence of any new fresh bad news and a slightly more dovish RBA, we could see GBPAUD gently drift higher. Next week’s UK Inflation data, Retail Sales, Unemployment and then Australia’s Unemployment data could all be market movers. If you have a transfer now or in 6 months, making some plans around up coming events is key to getting the most for your money.

Whether on amounts of 10,000 GBP or multi-millions, if you have a transfer we can secure preferential commercial rates of exchange and offer practical assistance with the timing of when to lock in a rate.

Thank you for reading and for more information please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

Will pressure on Sterling result in further falls for GBP/AUD, even if the RBA doesn’t want a stronger Aussie Dollar? (Joseph Wright)

There has been a lot of talk recently from both economists as well as the Reserve Bank of Australia that the Aussie Dollar is an overvalued currency.

Of all the major currencies the Aussie Dollar is the 4th best performer so far in 2017, and whilst this sounds like a positive thing to many the reality is an overvalued currency isn’t great news for export driven currencies due to the fact that it makes purchasing goods from Aussie more expensive, and therefore negatively impacts the economy.

The issue the RBA have is that cutting interest rates again in order to stem demand for the currency isn’t easy, as the likely market reaction within the property market would be negative. This is why I don’t think there will be a rate cut, as the property market is already overheating and if they make mortgages even more affordable that problem could spiral, especially in the East-cost of the country where property prices are already very high and unaffordable in many cases.

The Pound is coming under increasing pressure due to the Bank of England’s decision not to raise interest rates, and also just yesterday it emerged that the BoE’s forecast for the UK economy in 2017 isn’t going to grow at the rate they had previously expected.

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.

 

Where can we expect GBPAUD rates to go in August?

I would be very surprised to see GBPAUD slip below 1.60 but equally surprised to see it rise above 1.70. Current levels in and around the 1.65 represent a fairly mid range price from what we have been used to for most of 2017. The pound has of course been the big loser with uncertainty over the Brexit but trends on the Australian dollar have also been really important. If you have a transfer buying or selling Australian dollars understanding the market and all of your options is key to maximising the opportunity for your transfer.

Yesterday was the big news for the GBPAUD exchange rate, the UK’s Super Thursday of data releases including the Bank of England and the Quarterly Inflation Report. The pound could easily drift lower in the coming weeks but the move yesterday was definitely something for both buyers and sellers of Australian dollars to take note of. Basically the lack of any interest rate hike for the UK makes it very difficult to expect the pound to rise sharply this month. What can we learn from this?

If you have a transfer to make buying the Australian dollar with pounds the outlook for sterling remains uncertain and expecting big improvements could be very risky as many clients have found out recently. Conversely clients looking to sell AUD for GBP are in a very good position because of the weakness of the pound which is representing a very good opportunity for them to sell.

I expect GBPAUD to trade in a range of between 1.62 and 1.67 for the rest of August. If you have a transfer to make in the coming weeks and wish for a better level please let me know by emailing jmw@currencies.co.uk. Thank you for reading and please let me know if there is anything I can help with.

Sterling climbs against the Aussie Dollar as the RBA warns of strong currency putting pressure on Australian economy (Joseph Wright)

The Pound to Aussie Dollar exchange rate hit 1.66 in the early hours of this morning, and this was the first time in over 2-weeks that we’ve seen the Pound trade this high.

The headline comments from the Reserve Bank of Australia in the early hours came in the form of a warning, saying that the ‘Aussie’s recent strength has been placing pressure on the Australian economy’ and this resulted in the selling off of AUD.

The RBA appears to be fairly neutral in its outlook for future growth after suggesting that forecasts for the Australian economy remain unchanged (currently at 3% annually).

The fall for the Aussie dollar came after data showed that sentiment within the Manufacturing sector strengthened, along with the positive move of 7% increase in the value of Iron Ore which has given AUD a boost.

It appears that the RBA would prefer a weaker Aussie Dollar and I think that those planning on converting Aussie Dollars into Pounds should consider the gains they’ve seen recently, and whether they think the Aussie can continue to strengthen at its current rate.

This Thursday is likely to be a busy day for Sterling exchange rates as a whole and I expect to see the GBP/AUD rate see volatility. Thursday is being billed as ‘Super Thursday’ and if you would like to discuss why in future detail do feel free to get in touch.

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.

 

Could the Pound fall further against the Australian Dollar? (Tom Holian)

The Pound has been really struggling to make gains vs the Australian Dollar over the last few weeks and since the election when GBPAUD exchange rates were close to 1.70 we have seen a huge drop in the value of Sterling exchange rates.

The Pound is finding it hard against all major currencies recently and the Pound has dropped by over 6% against the Australian Dollar in the last 2 months which is the difference of £6,000 on a transfer of £100,000 highlighting the importance of following the currency market or at least letting a currency broker do that for you.

Economic data in the UK has started to show signs of a slowdown as investor confidence in the UK economy as well as Sterling has started to fall.

UK GDP published on Wednesday showed a fall to 1.7% for the second quarter. This was in line with the expectation but the real problem is that the Brexit fears are slowly started to become realised.

The US and Chinese economy continue to post strong results which in turn in helping the strength of the Australian Dollar vs the Pound.

With the RBA unsure when to raise interest rates the meeting on Thursday by the Bank of England could be crucial as to the short term trend for GBPAUD exchange rates.

The likelihood is that we’ll see a change in the vote from last month which showed 5-3 in favour of a rate hike. If we see a fall in the appetite then I think this will send the Pound lower vs the Australian Dollar so keep a close eye out on the announcement later in the week.

 

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Australian Dollar remains strong, but Aussie Dollar sellers should be wary of the RBA’s attempts to weaken it! (Joseph Wright)

In the last month alone the Aussie Dollar has gained an impressive 4% against the US Dollar, and the currency has also manged to find itself trading at the top end of it’s post-Brexit levels against the Pound.

It has also become clear that the Reserve Bank of Australia is skeptical to make amendments to the current interest rate through fear of affecting the housing market. Property prices are overheating down under, especially in the east-coast and a change could create a dramatic impact so I believe there won’t be a change for a while.

The Pound has been underperforming recently which has accentuated the losses for the GBP to AUD rate, and although I think there’s a chance we could see the RBA attempt to talk down the Aussie Dollar and economy in order to keep the currency from becoming even more overvalued, I would rule out a move back down the lowest levels since the Brexit vote of 1.59.

If you are planning on exchanging Aussie Dollars into Pounds and think the rate could become even further favourable, it may be worth looking into setting up a Limit Order in order to try and trade at a higher rate should it become available. I’ll be happy to discuss this in further detail should you wish to.

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 the GBPAUD rate rise or fall?`

The Australian dollar has been strengthening lately as investors predict that it will be sooner than later the RBA (Reserve Bank of Australia) has to raise interest rates. Where the RBA had previously been adopting a ore neutral stance which had see the Aussie weaker for part of 2017, the expectation is now for the to raise rates in the future. What this means is that the Australian dollar could strengthen even further and we could see rates to buy Aussies with pound getting more expensive. If you need to buy Australian dollars with pounds or even sell AUD for sterling understanding the market and your options in advance is key to maximising the position.

Expectations for the AUD to rise even further against the pound do seem likely but at the same time it would not be all too surprising to see the currency soften now. For Australia to raise interest rates they have to consider the negative impact on the Australian dollar since as a net exporter (they sell more overseas than they import) it is not good for the country to have an expensive currency. They want a weaker currency to encourage inwward investment and stimulate the economy.

Raising interest rates could easily cause the currency to weaken since with their base rate currently sitting at 1.5% it represents a very good investment compared to other currencies to invest in. Therefore I believe if you have a transfer to consider whilst the rates are uncertain you should be looking to make sure you don’t take too much risk and suddenly find the rate has unexpectedly become more expensive.

If you have a transfer to make current levels to buy pounds with Australian dollars are much improved from the last few weeks but this might not last. And for Aussie buyers the outlook is still shaky and we could easily see rates sub 1.60 once again. For more information on the best way forward with your transaction please speak to me Jonathan Watson by emailing jmw@currencies.co.uk to get a fresh overview of the market and analysis of the best way forward.

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

What will happen to the Pound vs the Australian Dollar this week? (Tom Holian)

Over the last two months the Australian Dollar has strengthened against the Pound by as much as 7% or the difference of £10,000 on a currency transfer of AUD$200,000 making a big difference as to when to move to or from Australia.

However, overnight we have seen some small gains for the Pound vs the Australian Dollar when RBA governor Philip Lowe suggested that any interest rate hikes may be some time off.

This led to the Pound briefly hitting 1.65 vs the Australian Dollar providing some brief respite to anyone looking to send money to Australia.

Today’s UK GDP data came out exactly as expected for the second quarter so this did little to affect GBPAUD exchange rates so the next catalyst for movement could come overnight with the release of the latest interest rate decision for the US when the Federal Reserve meets to decide its latest monetary policy.

I still think if there are any gains for the Pound vs the Australian Dollar they will be limited as the Pound continues to struggle owing to the Brexit uncertainty and that is unlikely to go away in the near future.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

Pound to Australian Dollar improves despite IMF downgrade, is this a sign that the Pound is oversold? (Joseph Wright)

I wrote last week about how some analysts as well as members of the Reserve Bank of Australia are becoming concerned that the Aussie Dollar is becoming overvalued and higher than it perhaps should be, and I believe we will continue to hear similar commentary in the upcoming months.

Earlier in the year the Pound to Aussie rate hit the mid 1.70’s whereas the pair are now trading closer to 1.50 than 1.60. Since the Brexit the lowest the pair have fallen to is to a mid-market level of 1.59 so i don’t think we can rule out another move to these low levels as we don’t require the GBP/AUD pair to do something they haven’t in recent history.

In the early hours of this morning the Pound started off on the back foot after the International Monetary Fund (IMF) downgraded both the UK and the US growth forecasts for the rest of this year.

Throughout the day though the Pound has climbed, not just against the Aussie but across the board as the Pound as gained against all major currency pairs today.

Despite this boost I think that we could see the Pound trade at lower levels, especially if the UK inflation rate continues to under-perform and the likelihood of a rate hike from the Bank of England continues to dwindle.

If you have a 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.

Australian dollar predictions against sterling

Over the last two weeks the Australian dollar has been making inroads against the pound and GBPAUD exchange rates have plummeted 7 cents. To put this into monetary terms for any clients that are purchasing Australian dollars with pounds a 400,000 Australian dollar purchase will now cost just under an additional £10,000. However on the other hand for clients converting Australian dollars into pounds this is certainly something to smile about.

The latest minutes from the Reserve Bank of Australia gave no clear indication that the RBA will be  raising interest rates anytime soon however the minutes were seen as bullish as it is clear that the next move will be to follow the trend of other central banks and raise the base rate.

UK inflation data disappointed last week which has relieved some of the pressure the Bank of England were receiving. The Bank of England set an inflation goal of 2% and at present even with the drop, inflation sits at 2.6%. Many economists were predicting if inflation rose above 3% we would get clear direction from the Governor of the Bank of England and an interest rate hike early next year was likely. However with inflation now falling the chances of a rate hike have diminished.

Since the UK public decided to vote out of the EU, the pound has lost approximately 15% against all of the major currencies. Brexit negotiations I believe will continue to weigh down on the pound for the foreseeable future as I don’t believe a deal will be struck anytime soon in regards to the divorce settlement or the rights of EU citizens living in the UK.

Therefore for Australian dollar buyers purchasing currency on the back of a positive move would be my strategy as I do not foresee any substantial gains being made over the upcoming months. Australian dollar sellers may wish to take advantage of the 7 cent spike in their favour or should continue to monitor the market and try to covert in the 1.50s.

However Australian dollar sellers should be cautious as the National Bank of Australia believe the Australian dollar is overvalued which I actually agree with. At the moment currency investment continues to land on Australian shores due to the high interest rates.

The main data releases to look out for this week are UK GDP numbers Wednesday morning which are set to show a decline which could lead to further sterling weakness and the Federal Reserve interest rate decision Wednesday evening. It is unlikely the Fed will raise interest rates and I expect a neutral statement by Janet Yellen shortly after. This could lead to a further sell off of US dollars and the Australian dollar could benefit.

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. Alternatively call me Monday morning on 0044 1494 787 478 and ask the reception team to be put through to Dayle Littlejohn.