Tag Archives: buy Australian Dollars

Australian Dollar Holds Steady after Unemployment Data (James Lovick)

The Australian dollar is still seeing an uncertain period with so many factors globally influencing the exchange rate. Overnight has seen unemployment data released which has held firm at 5.5% as expected. The Reserve bank of Australia are paying close attention to the labour market at the moment and are keeping a very close eye on the amount of wage growth down under, something all the central banks are monitoring closely. When wage growth begins to rise it will be a reason for the RBA to raise interest rates although for the moment the figures are still sufficiently weak to make the case for no changes to interest rates.

The RBA minutes from the last meeting will be released next week and will reveal what the central banks thinking from the last meeting. Any suggestion that the RBA will look to raise rates this year and follow in the US Fed’s footsteps could see the Aussie gain although it is my understanding that they are more likely to monitor the situation in light of all the recent volatility in the financial markets. Those clients looking to sell Australian dollars hoping for a move back to 1.70 might have a good while longer to wait.

Clients looking to buy Australian dollars are seeing a good opportunity to buy although the recent rally in the price of sterling has slowed down in the last week with rates coming off the recent highs. The pound is likely to see a lot of volatility in the coming weeks coming from the political arena. There are a series of speeches to be made by British politicians within the British government which should offer more clues as to where Brexit will end up.

UK Prime Minister Theresa May will be in Germany tomorrow and she is likely to make a statement either on Friday or Saturday. If we go back to the Lancaster House speech back in 2017 the pound rallied by almost 2% following the speech and so it should not be underestimated how much the sterling markets could move if more detail over Brexit is offered.

To discuss your requirement and how these events are likely to impact on your own requirement then please get in touch with me at jll@currencies.co.uk

Will Australian Unemployment data send GBPAUD rates towards 1.80? (Tom Holian)

We are in for a big end to the week for anyone looking to transfer Australian Dollars as tomorrow brings with it a number of economic data releases down under.

We start tomorrow with the latest Unemployment figures for January as well as the Participation Rate which rose last month showing a small slowdown in Australia and this has weakened the AUD vs GBP following last month’s announcement.

I expect another slightly negative release for Australia overnight and I think this could provide the Pound with some support vs the Australian Dollar sending GBPAUD exchange rates in an upwards direction.

The Australian Dollar has remained under a lot of pressure against Sterling since the start of the year as the Australian economy has shown signs of a slowdown with the RBA unsure about what to do with monetary policy.

Inflation levels are very different from the west to the east coast and so a change in interest rates will not necessarily be of benefit to the whole country which is why the RBA are likely to keep interest rates on hold.

Meanwhile, the UK have hinted that the next interest rate hike may be coming in May and this is why I think we could see GBPAUD rates heading towards 1.80 before the end of the month. We end the week with RBA Governor Philip Lowe addressing the market so make sure you’re prepared to move quickly.

If you’re in the process of looking to transfer Australian Dollars and would like to save money compared to using your own bank then contact me directly for a free quote.

Having worked for one of the UK’s leading currency brokers for 15 years I am confident not only with being able to offer you better exchange rates but also help you with the timing of your trade.

For further information or a free quote email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk 

Will the Pound to Aussie Dollar rate recover back to pre-Brexit levels anytime soon? (Joseph Wright)

There has been a 1 and a half cent difference between the high and low for GBP/AUD today, as the pair appear to be continuing to decide which direction to move in next.

Sterling has performed in a mixed fashion against the majority of major currency pairs today and I think the economic data released this morning is perhaps one of the reasons for this.

This morning the office for national statistics (ONS) reported that annualised UK Inflation figures for January showed 3%, justifying the Bank of England’s concerns regarding the rising rates of inflation. This was above the expectation of 2.9% and and considerably above the BoE’s 2% inflationary target figure.

The potential for another rate hike from the BoE is now more realistic, and with wage growth now beginning to show signs of an improvement I think there is a chance of it happening this year which is why the pound has been climbing.

GBP/AUD is currently just under 1.80, and if the pair breach this key level I can imagine seeing the rate break through into the 1.80’s even if it’s proving a stubborn barrier up until this point. A move towards 2.00 would be back to pre-Brexit levels, and should AUD continue to weaken I think seeing GBP/AUD closer to this mark sometime throughout 2018 isn’t something to be ruled out.

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.

Inflation to influence GBPAUD exchange rates

Tomorrow morning the UK will release their latest inflation numbers and a slight fall is to be expected. Normally a slight fall would lead to a weakening pound however I expect a fall in inflation could strengthen the pounds position against the Australian dollar. My reasoning is that the Bank of England last week announced they expect inflation to fall and wage growth to rise, which will lead to an interest rate hike. The release is at 9.30am for further information in regards to the inflation release feel free to email me on drl@currencies.co.uk.

Later in the week (Wednesday) Boris Johnson is set to address the public in regards to Brexit. The aim of the speech is to unite remain and leave voters. Past history leads me to think that Mr Johnson may go off topic, especially if he is asked about Michel Barnier’s comments last week. For clients buying Australian dollars with pounds, I would be tempted to take advantage after the inflation numbers and not wait for Mr Johnson’s speech.

Economic data releases are thin for Australia until Thursday at 1.30am in the morning. Unemployment and employment change numbers are to be released. Unemployment numbers are set to fall to 5.3%, which is fantastic for the Australian economy. Employment change numbers are set to show a slight decline however I expect the Unemployment numbers to outweigh the employment change numbers, therefore I expect a positive morning for the Australian dollar.

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.

Where Next for the Australian Dollar – Stock Market Crash Impact (James Lovick)

The Australian dollar has seen a very volatile week with lots of events happening globally since Monday which have had a direct and considerable impact on the strength of the Aussie. The Australian dollar has come under pressure after $66 billion was wiped off Australian shares earlier in the week following a global sell off with considerable losses also seen in the US and UK stock markets.

The Australian dollar which is regarded as a commodity currency normally comes under pressure in times of global uncertainty and this happening again now. This new wave of uncertainty in the global economy could see further problems for the Australian dollar and the Aussie may have further to fall.

However the Reserve Bank of Australia may intervene before that happens and any signal from the central bank that it is keen to raise interest rates later this year could see the dollar bounce back. Clients looking to buy Australian dollars are seeing some excellent buying prices which have stemmed from the perceived extra global risk and there may be some more gains to be had in this rally. Any further shocks from the US are likely to result in further weakness for the Aussie.

GBP AUD

Rates for GBP AUD have seen a good week with levels for this pair now sitting at around 1.77. The Bank of England meet tomorrow to discuss interest rates and any change in policy could see movement for sterling exchange rates. The Bank of England Governor however is more likely to cause a market reaction on the back on any commentary on Brexit. The central bank is unlikely to make any changes to interest rates although any suggestion that there is likely to be a rate increase later this year should help support the pound.

Clients looking to buy or sell Australian dollars would be wise to get in touch to take advantage of any spikes in the market which si something we can help you with. Please feel free to get in touch with me at jll@currencies.co.uk

Could we be headed for further AUD weakness? (Daniel Johnson)

RBA to keep interest rates on hold

Things do not bode well for the Australian Dollar at present. The Reserve Bank of Australia (RBA) have recently indicated that interest rates will be kept on hold for the foreseeable future. It was following Australian inflation data in the final quarter of 2017. There was a slight increase, but it did not meet the expectation of 2%. Some could deem this as positive, but the problem is due to the inconsistencies regionally.

Canberra, Melbourne and Sydney saw inflation hit over 2.1%, but if you look at Perth an area heavily involved in commodity exports inflation is struggling at 0.8%. This is definitely a cause for concern which is the reasoning behind keeping interest rates on hold.

The housing bubble created by those flocking to high wage growth areas is also a problem. The housing market remains strong in the east but is considerably down in the west according to the latest CPI figures.

With Australia highly dependent on raw material export to China it is important to keep an eye on Chinese data. We recently saw a fall in manufacturing data which has also caused Australian Dollar weakness.

GBP/AUD

GBP/AUD now sits above 1.75 which has been a resistance point of late. With the uncertainty surrounding Brexit talks if I was selling Sterling I would consider taking advantage of current levels. The last time we saw GBP/AUD near 1.80 there was a quick retraction possibly due to profit taking.

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

 

Pound rises against the Australian Dollar after lower than expected Australian Inflation Data (Tom Holian)

The Pound has once again charged in an upwards direction vs the Australian Dollar breaking past 1.78 overnight.

Australian Inflation data for the final quarter of last year came out lower than expected and although the figure rose to 1.9% it came in below expected figure of 2%.

This means that the likelihood of the Reserve Bank of Australia raising interest rates at any point in the near future is severely reduced and this is why we have seen the Australian Dollar weaken against Sterling.

The CPI report also showed huge inconsistencies across the country with the cities in the east all above 2% but with Perth in the west showing a level of just 0.8% highlighting the disparity between the regions which makes things more difficult for the RBA to manage the economy effectively.

The same report also highlighted differences in the housing market from one region to another and this is why the Australia Dollar has weakened as confidence is likely to also fall down under which is good news for anyone looking to buy Australian Dollars with Sterling at the moment.

Chinese data has also been rather mixed recently and as China is the largest trading partner with Australia any lower than expected news can often have a negative impact on the value of the Australian Dollar.

We end the week with the latest Producer Price Index data from Australia and anything different could influence the rate to convert Australian Dollars so make sure you’re well prepared.

If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars compared to using your own bank then feel free to contact me directly for a free quote and I look forward to hearing from you.

Having worked for one of the UK’s leading currency brokers for 15 years I am confident of being able to help you.

Email me directly Tom Holian teh@currencies.co.uk

 

 

GBP AUD Hits Resistance at 1.75 (James Lovick)

The Australian dollar remains set for an uncertain and volatile 2018 which will be heavily dependent on interest rate policy from the Reserve Bank of Australia (RBA) and also the US Federal Reserve. For the moment the Australian dollar has been boosted on the back of a weaker US dollar with political uncertainty and the recent government shutdown. The underlying question is how keen the RBA will be to raise interest rates this year. If the US Fed hikes 2-3 times this year as forecast then the RBA will need to carefully decide how it follows.

As things stand there is an expectation that the RBA will seek to raise interest rates in June 2018 but if the difference in rates between the US and Australia widens too much then the Australian dollar could come under some selling pressure. For the moment the future outlook on interest rates is less clear which is likely to result in considerable volatility for the Aussie as more direction from the RBA is offered. The RBA are likely to favour a weaker currency to help its export markets so the central bank may be keen to take a more relaxed view on events in the US and not rush to tighten policy. The Aussie could see a gradual weakening as the US raise interest rates in the Spring.

The US debt ceiling is expected to be reached sometime in March 2018. This is likely to be a political animal and finding agreement to extend could prove difficult. The Aussie could see material gains around this period and so clients looking to sell Australian dollars may wish to try and find an opportunity around this period.

Australian inflation data is released tomorrow and will be keenly observed by the RBA. A higher number could help see the pound rally.

GBP AUD

Clients looking to buy Australian dollars with pounds have seen a good window of opportunity in the last week although the pound is struggling to climb much higher having broken through 1.75 last week. The mood on Brexit appears to be slightly more optimistic but even now in the second round of negotiations which commenced on Monday there is still much ambiguity. Discussion currently surround the so called transitional arrangement which so far appear less thorny.

However there could be complications and disagreement when it comes to the terms of the future trade agreement between Britain and the EU. Any souring of mood could see a sharp fall in the price of sterling and I would expect to see a number of drops in sterling as a direct result of these negotiations in the coming months. Buyers should be a particularly careful as it wouldn’t take much to see a sudden drop in the price of sterling.

To discuss your requirement and how to maximise on the rates of exchange as they become available please feel free to get in touch with me James at jll@curencies.co.uk

Will GBP AUD Break 1.80 (James Lovick)

The pound has seen an excellent week so far which has created a sudden opportunity for those looking to buy Australian dollars. Rates for GBP EUR peaked at 1.7719 today before slipping back in afternoon trade.

The pound has been given a boost this week as concerns over Brexit appear to have softened for the time being. French president Emmanuel Macron was in London at the start of the week and he signalled that Britain should have a bespoke trade agreement.
Even Ex-Prime Minister David Cameron was caught unware with a microphone saying that Brexit has “turned out less badly than we first thought”.

Clients looking for further gains could be hard pushed considering the changing tone coming from the Reserve Bank of Australia (RBA). The central bank is likely to follow in the footsteps of other global central banks and raise interest rates. Canada, the US and the UK all raised rates in 2017 and the markets are starting to prepare for a possible rate increase down under in June 2018.

The Australian dollar is extremely susceptible to the current events in the US and any deterioration in the political arena with more government shutdowns could weigh heavy on the US dollar whilst proving beneficial for the Aussie. As such the move to 1.80 could be a tall order for GBP AUD although any positive rhetoric from Brexit is likely to see a further boost for this pair.

In a quieter end to the week ahead of Australia Day tomorrow the markets will focus heavily on the official UK Gross Domestic product numbers. Although the expectation is for a drop in the numbers, something that has also been predicted by the International Monetary Fund, there are growing suggestions that there could in fact be a spike higher. A move higher to 1.8% for GDP in my view would help reinforce the push higher and could see another window of opportunity for buying dollars.

To discuss how these event impact on the currency markets and how we can assist with the timing of any transfers then please feel free to get in touch with me James and I will be happy to discuss. You can email me at jll@currencies.co.uk

What factors are likely to impact the Pound to Australian Dollar exchange rate? (Joseph Wright)

Despite the Pound to Aussie Dollar rate improving recently in line with the Pounds good performance in general, there are some analysts expecting to see the Aussie Dollar gain in the months to come.

If the Reserve Bank of Australia (RBA) follow in the footsteps of the US and begin raising interest rates like many expect them to, I think we can expect to see the Aussie Dollar strengthen so those hoping for a stronger Aussie Dollar should be aware of this.

In the current market conditions the markets are usually aware of any upcoming rates changes and it’s usual to see the change being priced into the value of the currency in the weeks and months leading up to the actual change.

Those following the GBP to AUD exchange rate should be weary of this as any allusions from the RBA could result in immediate changes in the exchange rate which currently sits around the 1.75 mark.

From the UK’s perspective the Brexit is likely to continue to drive the value of the Pound as markets the outcome of Brexit negotiations. A spokesperson for UK Prime Minister Theresa May recently came out and said that there is yet to be a transitional agreement made despite reports from some sources suggesting there was.

If you wish to be updated in the event of a short term price change for the Pound, 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.