Tag Archives: buy Australian Dollars

Australian Dollar Weakens on Trade War Escalations (James Lovick)

The Australian dollar has come under a recent wave of pressure losing ground across most of the major currencies this week. The Aussie has lost more than 4% over the last month with a noticeable fall against the US dollar. The Reserve Bank of Australia (RBA) are keeping all option open with regards to interest rate policy and the wording of whether or not interest rates will rise or fall in due course. However the RBA Governor Philip Lowe has indicated that he expects rates to rise and this was made clear when he last spoke.

The reason for the Australian dollars weakness is most likely due to the trade war escalations between the US and China. Whilst I have previously commentated that trade links between Australia and China are very strong and that Australia could be shielded by protectionist behaviour the recent escalation in tariffs is now having a detrimental effect on some of the other commodity currencies such as the Aussie. There is currently a better opportunity to buy Australian dollars.

The concern is that if global growth slows due to a trade war then the riskier currencies likes the Aussie are likely to feel the full force of slower growth and should see their respective currencies weaken. For the moment it’s all eyes on these developments and Trump had really signalled that he would seek to impose another $100 billion of tariffs on Chinese exports if there was like for like retaliation. Expect more developments form this story and potentially additional losses for the Aussie.

GBP AUD

Brexit continues to be the main driver for GBP AUD exchange rates and should see a volatile period ahead with the EU summit next week. British proposals on the future relationship should be made public very shortly and are likely to appear after the EU summit. The response form the EU as to progress so far will be very important for the pound and any escalation in tensions or the
potential for a no deal scenario is likely to result in sterling weakness. There is still an excellent opportunity for clients looking to sell Australian dollars. In my view once a deal thrashed out then the pound should strengthen materially. Although there is a risk of a no deal scenario which would be sterling negative, in my view this does not seem the most likely outcome and I am bullish for the pound in the medium term.

To discuss how these events will directly impact on your own currency requirement and how to achieve the best rates of exchange then please get in touch with me James at jll@currencies.co.uk

Bank of England to influence GBPAUD exchange rates (Dayle Littlejohn)

Today the Bank of England are set to release their latest interest rate decision and this event has the potential to have an impact on GBPAUD exchange rates. At the beginning of the year the Bank of England were hinting that an interest rate hike was imminent and due to a poor run of UK economic data interest rates were kept on hold and the pound lost value against the Australian dollar.

Today looks like we will receive similar commentary as the latest Q2 growth figures were a mixed bag, wage growth construction output and industrial production all missed the consensus. Arguable the only recent economic data release that exceeded expectation were the retail sales numbers.

My personal opinion is that the vote will be split 7-2 in favour of keeping interest rates on hold, which will be a slight non event. However Governor Mark Carney will talk down the chances of a rate hike in the foreseeable future due to the recent flurry of economic data, Brexit negotiations and trade wars. Arguably there is a good chance that buying Australian dollars with pounds could come more expensive throughout the day.

If you are buying or selling Australian dollars in the upcoming weeks, months or years feel free to email me with the reason for your conversion (company invoice, buying a property) and 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 I haven’t covered your currency pair please outline the pair you are converting. 

** 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! **

Will the Pound hit 1.80 this week against the Australian Dollar?

After having a very good run against the Pound the Australian Dollar has started to weaken in the direction of 1.80 on GBPAUD exchange rates. The confirmation from last night’s RBA minutes showed that interest rates are likely to be kept the same for the foreseeable future as they are helping to keep the economy performing well.

This has caused global investors to sell the Australian Dollar in favour of the US Dollar as the US Federal Reserve has already increased rates twice this year and this is the seventh time since December 2015.

Over the years the Australian Dollar has had a very strong positive yield but in recent times owing to the pace of rates going up in the US this has caused problems for the Australian Dollar.

However, not only is keeping interest rates on hold causing a problem for the Australian Dollar they are also facing the effects of Donald Trump’s latest threats of tariffs on Chinese goods.

As China is such a large trading partner with Australia then any negative news will often result in Australian Dollar weakness and this appears to be happening at the moment.

Trump has asked US officials to create a list of US$200bn worth of imports from China which could result in a very large trade war between the world’s two strongest economic powerhouses.

The Australian stock market has felt the effects of the news and the Pound vs the Australian Dollar hit the higher level of the 1.79 region earlier on during today’s trading session.

I personally think we could see the Australian Dollar weaken further this week and I would not be surprised to see the Pound hit 1.80 over the next few days.

On Thursday the Bank of England will hold their latest monetary policy meeting and recently the split has been 7-2 in favour of keeping rates on hold but with UK Retail Sales coming out much higher recently could this change one of the MPC member’s mind?

If you have a currency requirement coming up and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Reasons to be cheerful if you’re buying Australian Dollars

The Australian Dollar has been trading fairly well recently against the Pound but really struggling against a number of other currencies including vs the US Dollar.

The US are set to raise rates again soon and this could even happen on Wednesday evening when the US Federal Reserve hold their latest meeting.

The US have increased rates a number of times since December 2015 and this could be the second rise this year which is likely to put pressure on the value of the Australian Dollar.

Over the years the Aussie Dollar has benefited from high interest rates and a relatively stable economy but as the RBA are unlikely to raising rates anytime soon then this is likely to encourage global investors to move their money away from the Australian Dollar.

The knock on effect of this with anyone looking to buy Australian Dollars could potentially be good news.

In my opinion I don’t think we’re too far away from hitting 1.80 again in the near future but it will also be affected by what is happening politically in the UK.

The UK will debate the EU Withdrawal Bill on both Tuesday and Wednesday and the government is keen to get things sorted before the next EU summit due to held on 28th June.

Clearly the ongoing Brexit discussions are causing uncertainty for the UK economy and this is being reflected in the value of the Pound so any good news next week could see a good period for the Pound vs the Australian Dollar.

I work for one of the UK’s leading currency brokers and I’m confident that not only am I able to save you money on exchange rates but also help you with the timing of your currency transfer.

For a free quote then send me an email with details of your requirement and I’ll happily reply.

Tom Holian teh@currencies.co.uk

Important news to move Australian dollar exchange rates!

The Australian dollar has been a stronger contender on exchange rates lately as investors back the Australian dollar to potentially improve in the future. This is all owing to the improved expectations we have of late that the Chinese economy will improve further and the global economy is not as badly affected by the Trade Wars.

The Trade Wars and potential future trading activity of the global economy is a big driver on Australian dollar exchange rates, if you are looking for improvements for buying or selling the Australian dollar, keeping abreast of the latest developments is key to maximising your overall position. Australian unemployment data next week could be a big driver as attitudes to the economy and the labour market are vital to shifts in the likelihood of the RBA (Reserve Bank Australia) to raise interest rates in the future.

If you have a transfer to make in the future then understanding the market and all of your options in advance is highly recommended to help minimise the inherent uncertainty of just where levels could potentially go. On GBPAUD exchange rates we could easily see the rate rise to 1.80 if better UK news and worse information on the Aussie comes into play.

Next week is also crucial as we have the latest US interest rate decision where the market is anticipating further information from the US Federal Reserve on interest rate expectations. This could see the US dollar rise which would weaken the Aussie, their relationship is quite closely linked since both now have similar interest rates but investors might prefer to hold the US dollar as it is seen as a more stable and reliable currency.

If you have a transfer to consider in the future, understanding the market and all of your options in advance is key, for more information at no cost or obligation please contact me Jonathan Watson jmw@currencies.co.uk

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

Is the Australian Dollars reverse in fortunes likely to continue?

The Australian Dollar is continuing to strengthen, and put in another strong performance yesterday as sentiment surrounding the Aussie Dollar appears to be turning for the better.

There is renewed hope that the coalition in Italy will pull through after it stalled over the weekend, and this is helping push the Aussie Dollar higher as it removes uncertainty from the markets to a certain extent. There cost of commodities has also increased recently which has boosted the Aussie Dollars value, as the Australian economy is highly export driven.

I also think that now the talks of a trade war between the US and China have subsided, fears surrounding the global economy have also subsided leaving the Aussie Dollar in a stronger position. The positive moves for AUD recently can be highlighted when we consider that the Pound has lost almost 10-cents vs AUD in a short space of time.

It has also emerged that the US economy isn’t growing at the rate some economists had expected, meaning that there may not be as many rate hikes in the US as some had expected. This has boosted AUD as it could means investors will be less likely to move funds from AUD into USD in order to get a greater return.

Moving forward I expect to see AUD continue to strengthen, although further rate hikes from the US Fed Reserve later in the year could impact AUD negatively.

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 could be set to fall further after UK inflation unexpectedly drops

Bets in favour of the Bank of England hiking interest rates in the UK this year slid yesterday, after the UK inflation data released showed a drop in the cost of living in the UK.

Markets weren’t expecting this, and the Pound’s trend appears to have reversed after losing almost 10-cents against the Australian Dollar over the last month or so.

The markets had expected to see an interest rate hike two-weeks ago today after the UK economy had been showing some positive signs, but the drop in economic growth (its fallen to a 5-year low according to the latest GDP figures) has put the brakes on these plans.

Some economists are now predicting that it may not be until November this year until the next hike happens and that will of course be determined by how the UK economy performs.

There haven’t been a lot of reasons for the Aussie Dollar strength and I think the recent price changes can be put down to the Pound’s weakness. There aren’t expected to be any rate hikes down under this year and the Australian economy has also demonstrated signs of a slowdown.

The current GBP/AUD level is trading at a 2-month low, and if you wish to be updated in the event of a spike in the price do feel free to register your interest.

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 Dollar continues to trade in a volatile fashion, will the currency continue to decline?

The Australian Dollar saw a slight rise yesterday against many of the major currency pairs, although this strength is being put down to AUD benefiting from traders buying against the Euro.

AUD being one of the biggest benefactors of Euro weakness has come at a good time for AUD, as it’s been losing value recently at quite a dramatic rate. The fall in the value of the Aussie Dollar has been welcomed by the Reserve Bank of Australia as they were concerned when the currency was considered overvalued. With the Australian economy being heavily export driven a weaker currency is a benefit as it will attract more business.

Those hoping for a stronger Aussie Dollar should consider this, as the RBA is unlikely to implement any policies to limit the weakening of AUD.

Earlier this week it was announced that wage growth is lagging down under, and it’s also been confirmed by the RBA that a rate hike this year is unlikely.

This leads me to believe that the Aussie Dollar will continue to drop in value, and I wouldn’t be surprised to see the AUDUSD 2-year low tested now that we’ve seen a 1-year low breached.

When compared with the Pound the Aussie Dollar has staged a slight fightback after hitting an almost 2-year low, but I consider the longer term trend to be downward also despite the UK’s political uncertainty.

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.

Strong oil prices offer the Australian Dollar a welcome boost, where to next for AUD exchange rates?

The Australian Dollar has been supported overnight, which will be a welcome relief for those hoping for a stronger Aussie Dollar as the AUD/USD pair hit an 11-month low just yesterday.

AUD exchange rates have been struggling this year as the global economy picks up and monetary policy around the world tightens. Now that the US Dollar offers a higher rate of return investors are keen to hold funds in USD as opposed to the AUD as not only do they get a better rate of return, but the USD is considered more of a safe haven currency.

GBP/AUD hit a post-Brexit vote high recently trading in the 1.85’s, although it’s since slipped from these levels and has fallen further overnight owing to AUD strength as stock prices rose and the value of oil is rising. With the Australian economy being export driven and dependent on trade with it’s nearby neighbors, this is a positive so AUD understandably gained off the back of it.

There could be a lot of movement for the Aussie Dollar against the Pound today, as there is a Bank of England meeting at midday. Although no interest change is expected, I think we could see movement if any further amendments are alluded to.

There aren’t any major data releases out of Australia before the weekend, but if you wish to discuss what events could influence the Aussie Dollars value over the next few weeks do feel free to register your interest.

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.

US dollars strength puts pressure on the Austrlaian dollar

In recent weeks the US dollar has gone from strength to strength and investors are second guessing that commodity currencies will continue to come under pressure in the weeks to come. The US dollar index which measures the US dollar against a basket of major currencies is up 3% since mid April. Furthermore 10 year US bond yields have broke through 3% for the first time since 2014.  When bond yields are on the rise this tends to mean the central bank have another reason to hike interest rates.

Over the last few years speculators have left their assets in the Australian dollar due to the higher interest rates. But now that the US have hiked and it appears that further hikes are on the horizon I expect speculators will continue to sell off their Australian dollars in a bid for higher returns elsewhere. In regards to USDAUD exchange rates the Australian dollar has dropped below 0.75 for the first time in 10 months.

The problem the Australian dollar has is that the Reserve Bank of Australia have announced that there is no reason to hike interest rates anytime soon and some economists are suggesting the Australian dollar will be left behind as a hike doesn’t look likely for at least 18 months.

When buying or selling Australian dollars its always important to analyse both currencies you are converting. For example it looks like AUDUSD will continue to fall in the weeks to come as the US dollar continues to strengthen therefore selling Aussies to buy US dollars sooner rather than later may be wise. However if converting AUDGBP, the pound is under pressure because of Brexit and the Bank of England holding off for a period may be wise.

For people that buy and sell Australian dollars on a regular basis or are looking to make a one off transfer, the currency company I work for can save you money. Feel free to send me the reason for why you are converting currency, the currency pair you are trading (AUDGBP, AUDUSD), and the timescales you are working to and I will send you my forecast and the process of using our brokerage drl@currencies.co.uk.