Tag Archives: buy Australian Dollars

Will the Tories agree a deal with the DUP and the impact on GBPAUD exchange rates (Tom Holian)

We are now a year on from the Brexit vote when the British public voted in favour of leaving the European Union and as yet we are still a long long way off from a clear vision as to what things will look like in the future.

Theresa May has been in Brussels this week and has suggested that the UK would look to guarantee rights of EU nationals living in the UK of which there are over 3 million. This is clearly a step in the right direction but the EU has not confirmed any reciprocal arrangement.

At the moment the UK political landscape is extremely uncertain as the Tories have not set an agreement between themselves and the DUP and with the vote of the recent Queen’s Speech due to take place next week if a deal is not reach then things could go wrong very quickly for the Tories.

This is not good news for the Pound as we are still in a hung parliament and it is now over a fortnight since the election result. I personally think a deal is coming and this is likely to happen next week. In my opinion I think this will help the Pound recover some of its losses against the Australian Dollar.

However, I think the gains will be short lived as the Brexit talks are likely to be long and protracted. Therefore, if you’re looking at buying Australian Dollars keep a close eye on what is happening politically and get ready to move quickly if a deal is reached.

If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you. I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident of being able to offer you better rates when buying currency as well as helping you with various contract types.

Tom Holian teh@currencies.co.uk

GBP AUD Lower Ahead of Queens Speech (James Lovick)

GBP AUD exchange rates remain on the back foot after that UK snap general election created political uncertainty in Britain and which continues to weigh on the price of sterling. The Queens speech on Wednesday is the big event of the week in Britain and high volatility is to be expected. Any political attacks or attempts to vote down the Queens speech by Labour leader Jeremy Corbyn could see the pound weaken further against the Australian dollar.

As things stand no agreement has been made between the Democratic Unionist Party (DUP) and the conservative government so there could be fireworks tomorrow at the Queens speech. However if all goes smoothly at the opening of new parliament then GBP AUD could see a rally back toward 1.70. This may not come tomorrow but once there is an understanding of how the conservative government will be running with the support of the DUP then it should lend support to the pound.

Selling Australian Dollars

Clients looking to sell Australian dollars would be wise to consider taking advantage of the recent dip in the price of sterling as some economic indicators down under are starting to look wobbly. The Australian housing market in particular is being closely watched and concerns have been raised. The combination of booming house prices and rising household debt has even caused Moody’s to cut its ratings on some of Australia’s banks on these concerns.

The Reserve Bank of Australia’s minutes released this morning document this view on the housing market and there could be more developments in the coming weeks and months. Clients looking to buy Australian dollars could see some better opportunities if there is a turn in the sector.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Pound to Aussie Dollar exchange rate falls again, will the downward trend for the Pound continue? (Joseph Wright)

The Pound to Aussie Dollar buying rate dropped again throughout today’s trading session, with the exchange rate dropping by 0.65% throughout the day up until the time of writing.

Not only are the financial markets and investors concerned about the political situation in the UK, with the outcome of the election being one of the worse case scenarios for the UK as it resulted in a Hung Parliament, but the rising rate of Inflation and lower wage growth becoming an issue that could rise to the surface very quickly.

If the rate of inflation continues to climb but the rate of wage growth continues to decline (as figures released today showed it happening for the 3rd month in a row), I think the Pound could find itself trading at a much lower rate than we’re currently witnessing.

My reasoning behind this is because the UK consumer has been propping up the UK economy since the Brexit, which has allowed the ship to steady to an extent after all the warnings from market analysts should the UK pubic have voted to leave the EU.

Should the current trend of higher costs of living in the UK continue I think the Pound may fall as I previously mentioned, and if you would like to be kept updated regarding this matter as well as any others that can potential impact GBP to AUD exchange rates, do feel free to get in touch with me.

There’s a plethora of data due out tomorrow for the UK specifically, so feel free to contact me overnight to discuss these events and how they could impact any short term currency exchange plans you may have.

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 GDP provides strength for the Australian dollar (Dayle Littlejohn)

In the early hours of this morning Australia released their latest GDP numbers. As expected yearly and quarterly figures fell from previous figures however the numbers exceeded expectation. Yearly figures were released at 1.7% up 0.2%, and quarterly figures were released at 0.3, 0.1% higher than the consensus.

The Australian dollar has strengthened off the back of the next and GBPAUD exchange rates have dropped 0.65% and therefore 1 1/4 cents. To put this into monetary terms, for Australian dollars sellers buying £200,000 will now save themselves 2,500 dollars.

It’s a busy week for GBPAUD exchange rates as the UK General election is on the horizon. Theresa May and Jeremy Corbyn are still touring the country trying to sway the undecided voter. In recent days security has been a major talking point and Jeremy Corbyn has been on the attack insisting Theresa May should resign as the Conservative parties police cuts have made the streets of the UK less safe.

Theresa May has hit back stating that the police are well resources however she has also stated that she will change human rights laws in a bid to crack down on terrorism.

Towards the end of the week I am expecting major volatility for sterling vs Australian dollar exchange rates. If Theresa May wins a majority I expect the pound to make inroads against the Australian dollar and rates to increase back towards the mid 1.70s and beyond. However any other result I believe GBPAUD will fall back towards the mid 1.60s.

If you are converting sterling and Australian dollars short term, you need to make a decision now. The currency company I work for saves clients money on their currency conversions whilst offering up to date market information which helps the client make informed decisions. Therefore if you have an upcoming currency requirement and would like to save money feel free to email me directly on 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 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 a few minutes and in the past I have saved clients thousands! **

Australian dollar falls due to China’s credit rating (Dayle Littlejohn)

This morning China’s credit rating has been cut by Moody’s by one level to A1. A1 is the fifth highest credit rating by the well established Moody’s, and indicated that the country can meet debt requirements however are susceptible to change due to economic changes.  The reason why China have been cut is that debt levels are continuing to rise and will continue to rise in a bid to keep the economy growing. Moody’s stated “Rising Debt will erode China’s credit metrics, with robust growth increasingly reliant on policy stimulus.”

The slowdown in China is having a direct impact on Australia’s largest export Iron Ore. Fortescue, on of the largest producers of Iron ore have warned that Iron prices could continue to fall in the upcoming months. Since February Iron ore has dropped from $95 dollars per tonne to $60 dollars. With this in mind I wouldn’t be surprised to see the Australian dollar lose value in the upcoming months. Good news for Aussie buyers bad news for Aussie sellers.

However when buying or selling Australian dollars it is always important to analyse the other currency you will be converting. If you are a regular reader you will know that the brokerage I work for is based in the UK and therefore I write many articles including the pound. In regards to GBPAUD exchange rates the pound is under pressure due to the upcoming UK General Election and Brexit negotiations however I wouldn’t be surprised to see a slight rise in the upcoming weeks.

The problem I have longer term for Australian dollar buyers that will be using sterling is that any point I believe Brexit negotiations could stall due to the €100bn divorce settlement. If this occurs I expect exchange rates to fall back to the levels we become accustom to over the last 6 months (1.60).

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 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.

GBP AUD Before RBA Minutes (James Lovick)

This evening sees the Reserve Bank of Australia produce the latest set of minutes from the last meeting where interest rates were held steady. The dollar could see some gains if the economic outlook is upbeat from the central bank. The recent rally in commodity prices namely from oil and gold should also in theory lend further support to the Aussie. This is one of the reasons that GBP AUD has slipped from its recent highs of 1.76+ over the last week. The agreed cut in oil production is only going to exacerbate the position and the commodity currencies which includes the Australian dollar are likely toperform better after an uncertain run in recent weeks.

Those clients looking to buy Australian dollars with pounds may wish to consider taking advantage of what are still attractive levels despite the dollar gaining a couple of cents in these last two weeks. Those clients looking to sell Australian dollars could see some further room in the dollar’s recent rally.

For those clients with a GBP AUD requirement, tomorrow sees UK Consumer Price Index inflation numbers which could see a considerable market reaction. The Bank of England have recently pushed up their inflation outlook whilst cutting the growth outlook as of last week. A strong number tomorrow morning could see further support for sterling exchange rates as the numbers would effectively complement the Bank of England’s view. UK unemployment data is released on Wednesday which should provide for another interesting release as to how well the British economy is performing.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Why is the Australian Dollar weakening against the Pound, and will it continue? (Joseph Wright)

The Pound is trading at it’s 2017 high against multiple major currencies at the moment, with the Pound to Australian Dollar sitting at an 8-month high making the conversion of Pounds into Aussie Dollars a much more attractive proposition than it was for much of last year (after the Brexit vote).

The Pound has been slowly climbing since UK PM, Theresa May announced a snap election in June, and as the conservatives gain a more favourable position within the polls we’re seeing the value of sterling continue to climb.

At the same time the commodity currencies such as the Aussie Dollar have been struggling, as commodity prices have tumbled recently which is likely to have a knock on effect to the Aussie Dollars value as the Australian economy is negatively impacted as a result.

Just last week the price of Oil, Iron Ore and Copper all fell by 7% along with Gold which fell by 3%.

Tomorrow is likely to be a busy day for the GBP/AUD pair as a number of key data releases are due out. UK Interest Rates will be announced along with Inflation data and UK GDP, so there could be some major moves tomorrow. Feel free to get in touch if you wish to be kept updated regarding these releases.

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

The Pound has continued to hit recent highs to buy Australian Dollars as commodity based currencies have started to weaken recently.

Following the news released last Friday with US GDP which came out at its lowest level in 3 years and combined with the lack of an interest rate hike in the world’s leading economy this has seen the Australian Dollar lose value against the Pound.

This has created some good opportunities to buy Australian Dollars and with a 10 cent gain since last month this can be as much as £7,500 on a currency transfer of AUD$200,000 in the last month alone.

The Reserve Bank of Australia confirmed on Tuesday that it will be keeping interest rates on hold for the time being and this has also caused the Australian Dollar to weaken.

The Australian Dollar has also struggled overnight with the release of worse than expected Australian Trade Balance data as well as lower than expected Chinese Services data. As China is such a large trading partner with Australia any negative data release will often lead to weakness for the Australian Dollar vs the Pound.

Tomorrow morning the focus will move towards the housing sector down under and as the sector showed a fall last month another fall could see further problems ahead for the Aussie Dollar.

However, we are now less than 5 weeks away from the UK’s general election and this is likely to cause a lot of volatility for the Pound vs the Australian Dollar in the weeks ahead so expect volatility to increase during this period especially when the campaign gets in to full swing.

If you have a currency transfer to make and would like to save money on exchange rates when buying or selling Australian Dollars then feel free to contact me directly.

If you’re emigrating or buying a property then the difference compared to using your bank can potentially run into the thousands.

For further information email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Will sour Brexit negotiations continue to weigh on the Pound? (Joseph Wright)

So far this week we’ve seen a very typical pattern of trading for the Pound against the Aussie Dollar.

Political uncertainty has been the main driver of price fluctuations for GBP exchange rates for the past year as the Brexit vote, and subsequent discussions surrounding the process of leaving the EU have continuously weighed on the Pound’s value.

At the same time Sterling has been boosted by impressive economic data during this time which has supported the Pound, so it will be interesting to see which of the two factors have the strongest bearing on GBP/AUD over time.

This week we’ve seen the same pattern continue as the Pound softened earlier this week as over the weekend the tensions between the UK and EU surfaced after the European Commission’s President Jean Claude Juncker commented that UK Prime Minister Theresa May ‘is living in another galaxy’ regarding Brexit negotiations.

Despite the Pound falling in the wake of these comments the currency has since taken a turn for the better as yesterday mornings UK Manufacturing data release came out at its highest level in 3 years. This data showed that sentiment within the UK’s manufacturing sector is going strong at the moment which has been aided by the weaker Pound.

Moving forward I expect data out of the UK to be watched closely as investors will be keen to see how the UK is performing during this crucial two-year period of negotiations.

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 remain above 1.70?

The RBA (Reserve Bank of Australia) Interest Rate decision meeting overnight has not yielded any big surprises, as expected the RBA kept their base interest rate on hold. Many commentators are predicting some form of movement later this year, the jury is out as to what exactly we can expect but many commentators are now eagerly awaiting the next move. Personally I think clients looking to buy Australian dollars should be moving sooner to try and take advantage of the recent spike as a weaker pound could easily disrupt the current situation.

This week the big news is the US Federal Reserve Interest Rate decision in the US. The Federal Reserve have been on a path to raise interest rates which is having an effect on all currencies. In terms of the Australian dollar the expectation is that a stronger US dollar would weaken the Aussie. This was a trend we have seen in recent years as the previously higher yielding Aussie was swapped by investors for the US dollar. However recently some steps back by the Fed have contributed to a stronger Aussie. With this week’s US decision unlikely to see a hike and more likely to see a slightly more dovish tone from the Fed, I expect the Aussie could strengthen this week.

Looking then to the pound, well I would not be surprised to see GBPAUD lower on sterling weakness too. The pound remains at the mercy of the market’s views on Brexit and overall the likelihood is that the UK and the pound will come off worse. The recent spike for sterling will I believe not be sustainable and clients looking to see a stronger pound need to wait until after the UK General Election.

For more information at no cost or obligation on the best strategies to help with the planning and execution of any currency transfers you will need please feel free to contact me Jonathan Watson directly by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you.