Tag Archives: buy Australian Dollars

Busy day for GBP/AUD exchange rate, can we expect to see similar volatility moving forward? (Joseph Wright)

The Pound has been trading in a volatile fashion today as a number of headlines have resulted in Sterling movement.

Although there is no major data set for release out of the UK this week, and there was little released today by the way, I wouldn’t be surprised to see the Pound move further as Brexit talks appear to be heating up.

This afternoon we saw the Pound sold off as it appeared that Brexit Secretary David Davis has a different opinion to his European counterparts regarding how Brexit negotiations are going. The International Monetary Fund’s Managing Director, Christine Lagarde today also threw her hat into the mix and stated that there needs to be more clarity regarding the Brexit, and that a ‘No Deal’ Brexit is unimaginable.

The downward trend has since reversed for the Pound as in the last 30 minutes or so its been reported that Michel Barnier, the European Chief Negotiator for Brexit has stated that the EU could offer the UK a 2-year transition stay in the EU market after Brexit.

In a market like this its very difficult to judge which way the market will move, but working on a trading floor means that we’re able to react quickly to the sudden moves.

Today’s price movement has been over 1.25% which on large currency transfers can equate to a substantial amount of money, which is where timing your transfers can really make the difference.

There are no major announcements out of Australia either this week, so I expect the pair to continue to be driven by sentiment with today’s trading session being a clear example of how comments from significant personnel can move the markets.

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.

More of case of Sterling weakness the Aussie strength (Daniel Johnson)

BOE Rate hike based on misleading data

After GBP/AUD breached 1.70 which is considered to be a resistance point many hoped for further Sterling gains. Unfortunately this window of opportunity was small. Mark Carney the governor of the Bank of England (BOE) stated there is the possibility of a UK interest hike as early as November. I am of the opinion there is not enough justification for a hike as inflation is moving at a rapid pace and average wage growth is actually declining. He has used unemployment levels a  positive for the economy, being touted as the best levels since the 70s, but there has only recently been the introduction of zero hour contracts.

UK politics anchoring the pound

Although we have seen gains for the Aussie of late I am of the opinion this is more down to Sterling weakness than Australian Dollar strength. After the debacle that was Theresa May’s speech at the conservative party conference there have been calls for a new leadership election. Former Tory party chairman, Grant Shapps has mentioned that there are as many as thirty MPs who wish too oust May from her position. Now six months into her tenure you would have hoped she would now be in a stable position, but it is far from it. Political uncertainty historically weakens the currency in question so this situation does not bode well for the pound.

AUD Retail Sales

As mentioned earlier I believe the gains fro the Aussie are due to Sterling weakness rather than AUD strength, this is highlighted by the lack movement in favour of the pound following the worst Australian retails sales data in over four years.

Reserve Bank of Australia (RBA) assistant governor Guy Debelle is due to speak during the night and he does have the power to influence the markets. If he mentions monetary policy moving forward we could see volatility on the exchange. I would expect him to be dovish in terms of any potential rate hikes due to low wage growth, low consumer spending and increasing household debt.

If you have a currency requirement I would be happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at dcj@currencies.co.uk.

 

 

Australian Dollar strengthens against the Pound after US Jobs Report (Tom Holian)

US unemployment data showed the best levels since 2001 and this had led to a strengthening of all commodity based currencies including the Australian Dollar.

After hitting as high as 1.71 just over a week ago the Pound has started to fall against the Australian Dollar which has now started its own fightback.

There have been rumours circulating that the Bank of England may be gearing up to increase interest rates at next month’s meeting but in my opinion this would be far too early.

UK inflation is currently at 2.9% so there is an argument for raising rates but with average earnings not keeping up at just 2.1% then an interest rate hike could cause real problems for UK economic growth.

I say this because if an interest rate hike does take place this will increase costs for mortgages and rent which in effect which reduce the consumer’s ability to spend which is a large part of the British economy.

Therefore, I expect going into next week that we’ll see further losses for the Pound against the Australian Dollar next 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 I can.

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

We have seen the Pound consistently challenge levels of 1.70-1.71 in the last fortnight with the Pound clearly finding support vs the Australian Dollar.

The UK economic data announced during September was generally speaking very positive and this has been reflected in GBPAUD exchange rates.

UK inflation has hit a 5 year high recently and this has caused the Bank of England to consider raising interest rates sooner than the market previously had expected.

Typically if inflation rises then a central bank will hike rates in order to control the problem.

However, with UK average earnings falling behind inflation then in my opinion I think an interest rate hike could cause a problem for economic growth in the future.

The Reserve Bank of Australia are due to meet on Tuesday to announce their latest interest rate decision and at the moment I think the RBA will keep rates on hold but each meeting for the last few months has caused a lot of movement for GBPAUD exchange rates.

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.

Is the Aussie Dollars bullish run coming to an end? (Joseph Wright)

The Pound is continuing its recovery against the Aussie Dollar, with the rate rising above the 1.70 mark once again and this time almost hitting 1.72 at its highest point during today’s trading session.

I believe this change in direction for the pair can be put down to both Sterling strength as the pound is also putting in some strong performance against other major currency pairs. This is likely due to Brexit headlines and uncertainties not being in the spotlight which has been a welcome change for those hoping to exchange their Pounds at more competitive levels.

The upward movement for GBP/AUD has also been aided by the weakening Aussie Dollar which had previously been one of the strongest performers of the year.

The drop in the Aussie dollars value can be put down to a slowdown in Chinese growth, falling commodity prices such a iron ore which is key for AUD, and also talk of the Reserve Bank of Australia not planning on hiking interest rates until 2019 which is in start contrast to the Bank of England who have alluded to hike as soon as next month.

Tomorrow morning there will be a key data release out of the UK as UK GDP will be released around 9.30am. If this figure deviates from the expectation we could see further movement, so feel free to get in touch with me if you wish to be kept updated regarding this release.

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.

GBP AUD Finds Support at 1.70 (James Lovick)

The pound remains on a stronger footing against the Australian dollar this afternoon after all the recent political developments. The Australian dollar has come under some pressure after the elections in New Zealand and Germany have created ongoing uncertainty for the Aussie. The hung parliament which has come about in New Zealand could take weeks before a coalition government is formed.

Meanwhile in Germany it could take 2-3 months before a government is formed which is also seeing some investor caution which doesn’t bode so well for the Australian dollar. However in the case of Germany it will come about that Angela Merkel will serve her fourth term as Chancellor and so when confidence is restored this should help strengthen the Aussie.

Clients looking to buy Australian dollars with pounds are seeing a good opportunity to purchase although the pound did see a wobble on Friday after the eagerly anticipated Theresa May speech in Florence did not lift the pound. Brexit negotiations were kick started yesterday and any developments here are likely to direct GBP AUD exchange rates. Any positive noises from Brexit secretary David Davis or his counterpart Michel Barnier could help see the pound move higher especially if the door to discussing a future trade deal between the UK and EU is opened. For the moment levels have broken back over 1.70 for GBP AUD presenting good levels for dollar buyers.

Economic data down under is quiet this week and focus is likely to move to the escalation of tensions between the US and North Korea. The Australian dollar is perceived as a riskier currency so any further escalation between the two could see the dollar come under added pressure. Those clients looking to sell Australian dollars should be aware of the situation as any deterioration could see the Aussie fall sharply lower.

If you would like further information on sterling or 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 falls against the Australian Dollar after Theresa May’s speech (Tom Holian)

The Pound has fallen from its recent highs vs the Australian Dollar after Theresa May’s speech in Florence on Friday afternoon did little to help the Pound.

There were no real surprises in the speech but it has led to more questions surrounding the issue of Brexit and what it means for the long term future of the UK.

Clearly the Pound has felt the negative effects caused by the uncertainty as to how our relationship with the rest of Europe will look in the future and as yet we are no closer to some form of resolution.

Therefore, this is why we saw the Pound fall below 1.70 against the Australian Dollar.

As we go into next week however we could potentially see the Pound make a fight back vs the Australian Dollar.

The latest set of UK Inflation Report Hearings are due on Tuesday morning and with inflation haven risen to a 5 year high recently this has put pressure on the Bank of England to consider raising interest rates sooner than the markets may expect.

The recent inflation rates caused the Pound to make gains vs the Australian Dollar earlier this month so this is why I think we could see the Pound making a recovery against the Aussie Dollar by the middle of 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.

GBP AUD Breaks 1.70 ahead of Theresa May Speech! (James Lovick)

The pound has rocketed against the Australian dollar this morning ahead of the key speech from UK Prime Minister Theresa May. Today is very much about GBP AUD exchange rates and levels have already increased by 1.5% and have broken the 1.70 target for so many clients.

Why is the Theresa May speech so important for GBP AUD?

The long awaited speech from the British Prime Minister today is vitally important for the future direction of the pound as it could unlock the recent stalemate in EU negotiations between Britain and the EU. The expectation is that an offer of €20 billion will be made to kick start negotiations and commence discussions for a future trade agreement. If the speech is received well then the pound could see gains of 1-2% and could see an end of the very weak levels the pound has suffered since the Brexit vote.

Those clients looking to buy Australian dollars could see a fantastic opportunity to buy dollars later today. Please get in touch if you have a requirement and we can take a closer look at how to maximise on the rates of exchange when there is a spike.

Clients should exercise some caution however as there is a possibility that the pound could sink if the speech is not received well. The details will be in the response from the EU and if it is not sufficient then GBP AUD could lose much of its recent gains.

On the whole though GBP AUD is in a strong position especially considering the likely interest rate from the Bank of England which may come as soon as November. If all goes well today the pound could start pushing towards 1.75 for this pair and I am cautiously optimistic. Those who need to sell Australian dollars would be wise to get in touch and act fast.

If you would like further information on sterling or 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 hits best level against the Australian Dollar since July (Tom Holian)

The Pound has hit its best rate to buy Australian Dollars since early July after the Bank of England voting 7-2 in favour of keeping interest rates on hold this month.

Clearly there is a sustained appetite for raising interest rates in the UK and with inflation rising as shown on Tuesday the typical decision to combat rising inflation is to increase interest rates.

Bank of England governor Mark Carney has now suggested an interest rate hike may be coming but did not say when. He went on to claim that with UK economic growth better than expected combined with record low levels of unemployment the UK could be facing an interest rate hike sooner than the markets currently expect.

We saw huge jumps for GBPAUD exchange rates towards the end of last week following Thursday’s meeting and I think we could see further gains into the early part of next week.

Theresa May is also set to address the markets next Friday when she visits Florence to set out her goals for a post-Brexit Britain and about the UK ‘leaving the EU but not leaving Europe.’

Therefore, we could see a huge amount of volatility next Friday so if you’re concerned about a lot of movement and just want to get something arranged prior to this date then contact me directly for a free quote.

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.

GBP AUD Weak on Brexit (James Lovick)

GBP AUD exchange rates remain under pressure largely as a result of Brexit uncertainty in the UK which is keeping pressure on the pound. At the same time a buoyant Australian economy and an overheating housing market down under are helping keeping the Australian dollar supported. The Reserve Bank of Australia finds itself unable to lower interest rates and risk overcooking the economy. If anything the next move will be up and this is helping support the dollar.

Brexit Update – GBP AUD

Those clients with a pending requirement to either buy Australian dollars or sell Australian dollars would be wise to be kept in the loop with Brexit developments here in the UK. Brexit is the single biggest driver for GBP AUD right now and the weakness in the pound still presents those clients who are selling Australian dollars with an excellent opportunity to convert. If you have a transfer to make whether it be from a property purchase / sale or other investment then please get in touch to see how we can assist. Timing is everything in these markets.

A big day for the currency markets is looming when UK Prime Minister Theresa May is expected to give a speech around the 21st September which is likely to centre on Brexit and new details are likely to be offered. The last time she gave a speech like this was back in January this year at Lancaster House and the pound rocketed almost 2% immediately after.
My view is that this will be a very well crafted speech and the markets will probably receive it very well with gains to be expected for the pound, especially if history repeats itself.

Those clients with a requirement to sell dollars would be wise to consider moving ahead of this speech which will take place in around two weeks’ time, no date has officially been confirmed.

Those clients looking to buy Australian dollars with pounds would be wise to position themselves ready with funds available and in place so if there is a good jump higher we can lock in the rate at the higher levels. Please email me if you would like to discuss and to take a closer look at your potential requirement.

Meanwhile the Great Repeal Bill is being debated in the House of Commons and will be voted on early next week. Any holds up could see GBP AUD weaken in the short term although the bill is widely expected to go through without a hitch. I am not expecting problems here.

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