Tag Archives: buy Australian Dollars

Pound to Aussie Dollar hovers around a 18-month highs, will the Pound hold on to its recent gains? (Joseph Wright)

The Pound has managed so far to hold onto its recent gains against the Aussie Dollar, despite stalls to Brexit negotiations hitting the headlines over the past week.

There has been hopes of a agreed Brexit bill announcement this week, which would likely push the Pound higher but the there sticking point of Northern Ireland’s terms and its border is proving to be a stumbling block at the moment.

The UK’s Prime Minister, Theresa May has come under pressure for her dealings with her EU counterparts this week after many had expected to see the Brexit bill agreed, only to be disappointed to discover the Northern Irish border issue throw a spanner in the works.

Once the Brexit bill has been agreed the path is cleared for Brexit trade negotiations to begin between the UK and the remaining EU members, which I expect to be a positive for the UK and therefore the Pound. I also think that should a transitional deal be agreed we can expect to see the Pound climb also.

On a negative note for the Pound, should there be further stalls regarding any deals I think the Pound could see a sharp sell-off across the board as the UK is running out of time to make progress at the negotiating table.

If you would like to be updated in the wake of a short term price change between the Pound and the Aussie Dollar, do feel free to register your interest with me.

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.

 

How long will this period of Australian dollar strength against sterling?

My recent article this weekend suggested that there was a possibility that GBPAUD could reach 1.80 in the upcoming weeks and until late yesterday afternoon this prediction looked very likely. However the DUP at the close of business yesterday evening announced they are unhappy that UK Prime Minister could offer a different border control for Northern Ireland compared to the rest of the UK. Off the back of the news the pound lost ground against all of the G10 currencies and the Australian dollar.

Later that evening, the Reserve Bank of Australia held interest rates at 1.5%, which was no surprise, however surprisingly the Reserve Bank of Australia’s commentary was extremely positive which strengthened the Australian dollar further against the pound. With the amount of strength we have seen for the Aussie rumors the Reserve Bank of Australia may appear to be backtracking and actually could raise interest rates early next year. If this is the case, it’s quite clear that the RBA have been jawboning in an attempt

However, I’m still of the opinion that the UK will secure some kind of deal in the upcoming weeks with the EU which will mean trade negotiations will begin in the New Year. If this is the case this period of strength for the Australian dollar against sterling could be short lived therefore I would recommend any client converting Australian dollars into sterling should look to make arrangements sooner rather than later.

If you are converting pounds into Australian dollars as you are emigrating or if you are leaving Australia to move to the UK and need to buy pounds in the upcoming weeks, months or years feel free to email me with the 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! **

Australian Dollar Rockets after RBA Meeting (James Lovick)

The Australian dollar has made substantial gains overnight following the meeting by the Reserve Bank of Australia last night. The central bank held rates at 1.5% as widely expected however the commentary was slightly more hawkish which has led the markets to believe that there could be an interest rate hike down under in the early part of 2018. The markets had been expecting the first hike sometime in late 2018 and so this change in expectations is helping to strengthen the Aussie.

GBP AUD – Brexit Volatility

Clients looking to buy Australian dollars with pounds have seen a good couple of weeks with some of the best levels available for a year. The more upbeat mood in Britain in terms of the Brexit negotiations has helped the pound rally over these last two weeks although GBP AUD hit a major roadblock in afternoon trading yesterday.

The expected deal between Britain and the EU which focussed on the thorny issue of the Irish border was abandoned yesterday afternoon after the Democratic Unionist Party scuppered the deal stating it was unwilling for Northern Ireland to have different terms to Britain when leaving the EU. The pound dropped against the Australian dollar immediately after the news and we may need to wait until the end of this week or next before new developments emerge.

If no deal can be hammered out then the pound is likely to drop in value quickly although the expectation is that there will be sufficient progress for Brexit talks to move onto trade before the end of next week.

Clients looking to buy or sell Australian dollars are likely to see major new direction in the rates over these next two weeks ahead of the key EU summit 14th & 15th December. Please get in touch to discuss how these event directly impact on the rates of exchange and how it affects your specific requirement. Please email me James at jll@currencies.co.uk

Pound hits best rate to buy Australian Dollars in 2017 (Tom Holian)

The Pound has now hit its best rate to buy Australian Dollars all year as it looks as though we could be seeing some positive movement behind the scenes with the ongoing Brexit negotiations.

The Pound has finally broken through the resistance barrier of 1.75 and has touched 1.78 earlier this morning but has started to slip back as we see a little bit of short term profit taking.

The figures that have been suggested are approx €50bn as part of the divorce bill although this figure will probably be more like €100bn as the UK may have to pay for its liabilities that it has committed to previously.

The good news for anyone holding Sterling is that the talks appear to be going in the right direction at the moment and this has really helped to improve the outlook for Sterling exchange rates particularly against the commodity based currencies including the Australian Dollar.

Tomorrow morning brings with it the latest RBA Commodity Index which is an early indicator of export price changes. We have seen this fall in recent months so any further slowdown could see GBPAUD exchange rates go in an upwards direction towards the end of the week.

The rate to buy Australian Dollars will clearly be impacted by what is happening with the Brexit and if the discussions continue to go in the right direction we could see the market continue to improve in Sterling’s favour.

With the next EU summit due to take place in mid-December this could be the critical event that will impact GBPAUD exchange rates so expect to see a lot of volatility.

With GBPAUD exchange rates already rather volatile in the last few weeks it may be worth removing the risk of what may happen to rates by buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

 

GBP AUD Finds Support at 1.75 (James Lovick)

GBP AUD Exchange rates are back up over 1.75 again for this pair creating a good opportunity for those clients looking to buy Australian dollars. The Aussie dollar has come under pressure of late for a number of reasons. The dovish commentary from the Reserve Bank of Australia means that although the next interest rate movement is more likely to be up rather than down the timing of a rate hike will probably not be until the end of 2018. The other factor putting pressure on the Aussie stems from what is happening in the US.

The US Fed are looking to raise interest rates in December although there have been renewed concerns over weak inflation and more importantly weak wage growth, something that has become an issue for many of the major economies. As interest rates in the US go up taking rates higher than what are currently available down under this has the effect of helping drive up the US dollar whilst weakening the Australian dollar. With the US looking to continue raising rates another 2-3 times in 2018 as things stand then the Australian dollar could find itself under considerable pressure in the New Year.

Clients looking to buy or sell Australian dollars should pay particular attention to the EU summit in the middle of December as this is where the pound should see new direction. Should the Brexit stalemate be overcome then the pound could rally materially although the risk remains of a no deal scenario.

UK banking stress test released this morning have highlighted the banks are strong enough to withstand a severe stress test scenario in a sign of strength for the banking sector. More importantly the Governor of the bank of England has said that bank will continue to support the economy in the event of a disorderly Brexit.

For more information on the Australian dollar and how these key upcoming events have a direct impact on the rates of exchange and how to maximise on the opportunities as they happen then feel free to get in touch with me James at jll@currencies.co.uk

Will the Pound continue to rise against the Australian Dollar? (Tom Holian)

The Pound has continued its recent positive run against the Australian Dollar and overnight it has been suggested that some senior ministers in the UK are putting pressure on the government to increase its offer to the EU to leave.

The next meeting is due to be held in December and if this happens this could take the discussions forward which is clearly a positive for the UK.

Downing Street itself has dismissed the rumours that it is looking to double the ‘divorce bill’ payment but I think we could see an offer from the UK coming fairly soon.

The next Brexit summit is due to take place on 14th-15th December and the main topic for discussion will be the Irish border which has still not yet been sorted.

The RBA released its minutes overnight and this has caused GBPAUD exchange rates to move in an upwards direction as the central bank sees ‘considerable uncertainty’ around wage pressures and therefore any interest rate change is very unlikely which has caused the Australian Dollar to weaken against Sterling.

With tomorrow’s UK Autumn Statement due for release I think we could some volatility coming in the morning so make sure you’re prepared for any market movement.

This could be rather difficult for Chancellor Philip Hammond after he was forced to scrap his previous plan of attempting to raise the level of National Insurance.

The likelihood is that he’ll aim the budget towards younger voters as this was the demographic that the Tories appear to have lost at this year’s election and this could include a big push on housing.

I think we could see some uncertainty during the announcement tomorrow but once we get past this issue I think the Pound could gain even further.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Pound to Australian Dollar rate hits a 5-month high, will the upward trend continue? (Joseph Wright)

Those following the GBP/AUD rate will be aware of the positive moves for the Pound recently, and within the past 24 hours the rate has hit a 5-month high making it a good time for Sterling sellers.

The rate has traded within just 2 and a half cents of the best levels in the last year, so the questions are now being asked as to whether the pair can reach a new 1-year high.

Those with a currency requirement involving the pair should be aware that the Pound isn’t trading in such a strong fashion against many other major currency pairs, and that in my opinion there is potential for the Pound to fall for a number of reasons.

The UK Prime Minister, Theresa May is currently under pressure as rumours build that there a a number of members of her party prepared to sign a vote of no-confidence regarding her position. Should this issue surface I would personally expect to see the Pound fall quite dramatically against the Aussie Dollar amongst other major currencies.

At the same time inflation hasn’t quite hit the high levels the Bank of England was expecting to see so the chances of future rate hikes have diminished somewhat, certainty regarding the short term future.

If you’re following the GBP/AUD rate and would like to be kept updated to any major swings in the rate, do feel free to register your interest with me.

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.

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.

 

GBP AUD Rates Slide on UK Brexit Uncertainty (James Lovick)

GBP AUD exchange rates have inched lower this week as ongoing British politics continue to weigh heavy on the pound. Clients looking to buy or sell Australian dollars would be wise to look at their options very quickly as developments over the next two weeks are likely to have a very big impact on the value of sterling rates.

UK Prime Minster Theresa May and the British government are feeling the pressure this week as it has been reported that forty conservative members are prepared to sign a letter of no confidence in the Prime Minister. It would only take another 8 signatures that would force a leadership challenge and this perceived risk of a potential change of leadership is piling on the uncertainty for the pound.

The recent ultimatum from the EU giving Britain just two weeks to cough up more money in the Brexit negotiations or face a no deal situation is yet another major concern for those clients holding pounds looking to buy Australian dollars.

Any deterioration in these negotiations will likely see the pound weaken further and sterling will very much depend on progress in the next couple of weeks. If for example there is no agreement on the divorce settlement and talks break down with no deal at all then in the short term the pound could come under sizeable pressure. This is a real risk and there is every chance that this least preferred option could become a reality for all sides involved.

Consumer confidence numbers from Westpac are released later which should give some clues as to the strength of the Australian consumer. Wage price data is released on Wednesday which could help see the dollar rally if the numbers arrive better than expected. The lack of action from the Reserve Bank of Australia though is only likely to prevent the dollar from strengthening too much. The decision to maintain rates at such low levels is keeping the dollar on the back foot.

Anyone selling Australian dollars could see some excellent opportunities in the next 10 days if Brexit starts to look messy which could provide a short window of opportunity. Please feel free to contact myself James at jll@currencies.co.uk and I will be happy to take a look at your requirement and see how your transfer may be impacted by these economic and political changes.

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.