Tag Archives: Buying AUD

Will GBPAUD reach back to 1.70?

If you are holding pounds and looking to buy Australian dollars it has been a stressful period with the pound failing to spike as many had predicted on the back of the UK election. There was a belief the pound would rally to perhaps over 1.80, the Aussie having been on the back foot as Chinese data was failing to live up to expectation. Lately however the Chinese data is looking much better which, in conjunction with the pound sliding as the hung parliament divides opinion over the British pound, has seen the GBPAUD rate slip too. If you need to buy or sell Australian dollars making some plans around the next twist and turn is crucial since the current market is not pointing clearly in either direction.

We offer detailed insight and strategy to clients looking to move large volumes of currency around the world generally following property transactions or business transfers. This is because when moving such large volumes of say 50,000 GBP up to multi-millions a small difference in the exchange rate can mean a huge difference in the amount of currency you receive. Getting the timing and planning right is crucial to getting the best deals on the rates.

For clients looking towards the GBPAUD exchange rate pairing looking for better rates this week could offer some fresh opportunities with the latest fresh news over the UK’s political situation and also news relating to the Chinese economy. Since the Chinese economy is so closely linked to the Australian dollar keeping up to date with information here is crucial to getting the best rates. If you have a transfer to make this week has a number of releases which could see the GBPAUD rate move say 1 – 2 cents presenting a quick opportunity for savvy buyers and sellers!

For more information on the best rates and how to manage your exchange please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. If there is anything I can help with please don’t hesitate to contact me directly.

Buying and selling Australian Dollar rates finally expected to re-emerge from political limbo (Joshua Privett)

The Pound has been in a very visible limbo since the inconclusive election result, with Australian Dollar buyers and sellers waiting for news on where rate trends are expected to go moving forward.

That is not to say the interim period has been lacklustre and boring. Far from it. It is simply that economics has taken over in the meantime.

This has been the saga of interest rates which has been a dominant factor in currency value since last year, with the US being the first developed country to raise interest rates since the financial crisis.

Public disagreements between the Governor of the Bank of England, Mark Carney, and members of the BOE Monetary Policy Committee over whether to raise interest rates in the UK or not has seen the Pound behaving like a yo-yo in recent weeks, but with little overall change.

The deciding factor will be the official formation of a minority Government next week, with official voting on their manifesto to go through Thursday-Friday to conclude the month of June.

The fact that any resolution seems likely to help the Pound given the hints noted recently on currency markets should be in the forefront of anyone with a Australian Dollar requirement’s thought process. The question at this point arguably is just how much the Pound will rise up against the Australian Dollar next week, and not if. 

In this context Australian Dollar buyers do not seem to have the same level of urgency as Australian Dollar sellers. You can secure exchange rates for AUD/GBP beofre interbank rates are expected rise back above 1.70 by contacting me over the weekend whilst markets are closed on jjp@currencies.co.uk. Even if your requirement is not until the end of the year, you can pre-book your currency at current attractive levels using the tools available at a specialist currency brokerage. There is not additional cost to pre-book.

I strongly recommend that if you have a currency requirement to buy Australian Dollars to contact me again on jjp@currencies.co.uk to discuss a strategy for your transfer aimed at maximising your AUD return.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you a significant sum on a prospective transfer.

What can we expect next for GBPAUD currency rates?

Tonight is the latest RBA (Reserve Bank of Australia) Meeting Minutes which will provide further insight into the latest thoughts from the RBA with regard to the relative strength or weakness of the Australian dollar. If you are looking to make a currency exchange buying or selling the pound or Australian dollar then understanding the latest news here is critical to what kind of rates you might expect in the future. In assisting my clients with the timing of any transaction as well as the best rates of exchange this release will be critical to understanding what might happen next on the rates.

The pound has clearly weakened following political uncertainty in the UK, but news from the RBA (Reserve Bank of Australia) could easily change that. Generally speaking the market is predicting the outlook for the RBA to be one where they are gently leaning towards hiking interest rates although this is unlikely to be anytime soon. If you are buying Australian dollars in the future this would potentially mean the transfer becomes more expensive, if you are selling AUD to buy the pound, the rate could get better.

Timing is everything in the currency market and understanding what my or may not influence your exchange rate is key. With almost ten years of experience assisting clients looking to buy and sell the Australian dollar I am well placed to offer my clients up to date news on what will impact their exchange rate.

If you have a transfer to make buying or selling Australian dollars for pounds, it is fair to say a weaker pound could see this level slip lower into the 1.60’s. However the Queen’s speech and uncertainty over the UK election final result this week reminds us that events can quickly changes and lead to unexpected results.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you and assisting with your transfer.

Will the pound continue to fall against the Australian dollar (Dayle Littlejohn)

In the run up to the UK general election GBPAUD exchange rates remained buoyant around the mid 1.70s which was a surprise to the traders here as the pound was falling across the board against all of the major currencies. I put it down to the Australian dollar weakening due to iron prices and the slow down in China.

Once the general election exit polls were released the pound started to tumble against the Australian dollar and rates continued to fall once it was announced that Theresa May had not won an outright majority. GBPAUD exchange rates have dropped 8 cents since the election result which means if clients are converting 400,000 Australian dollars back to sterling they will receive an additional £10,800.

Looking further ahead I find it difficult to see how the pound will gain any momentum until a government has been formed. At present UK Prime Minister Theresa May is trying to form a minority government with the DUP. Many have questioned the alliance as some of the DUP policies and views seem controversial and not supported by the Conservatives.

Personally I believe a government will be formed in the upcoming days which could provide some stability for the pound. Thereafter Theresa May will turn her attention to Brexit negoations and with the election result a softer Brexit looks more likely which actually improve the pounds value as remaining a part of the single market could actually occur.

For Australian dollars sellers buying sterling, it appears China are going to continue to slow and economists are predicting iron ore prices will follow which will have a negative impact on the Australian dollar. The spike we have seen over the last 5 days may be worth taking advantage of.

If you are trading GBPAUD in the upcoming weeks, months or years and want to save money 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 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 GBPAUD rates hit 1.80? Best rates in 8 months to buy Aussie dollars with pounds!

The overall impression for GBPAUD rates is now much more positive with sterling rising and the Australian dollar on the back foot following a series of releases which have unsettled investors attitudes to the Aussie. The general impression for the markets is that GBPAUD rates could now rise higher as the trends that have contributed to the rise from 1.59 to 1.76 continue further. I would not be ruling out rates of 1.80 in the coming weeks, it appears clients looking to sell AUD for sterling should be making plans around what could be a very volatile and choppy period.

Let us look at the situation from the perspective of clients buying Australian dollars, the rates are very good. We are at the very best rates we have seen since September of last year. The pound has been on the very weak side at the risk of falling further owing to uncertainty surrounding the Brexit. On a £200,000 transfer between the highs and lows you are today looking at an extra 33,000 AUD compared to the lower points. With the market appearing to favour if not further sterling strength then a much stronger and supported pound the general impression is that clients selling AUD to buy pounds will suffer.

Sterling could struggle in the run-up to the UK election but will for sure strengthen once Theresa May is confirmed Prime Minister. The overall viewpoint stemming from the previous elections is the pound weakens before and rise after. However this time it is a little different since the result is largely expected and will therefore be priced in to the value of sterling.

All in all I would be very concerned if I was selling Aussie dollars to buy pounds as it looks like the market has now shifted and to claw back and see rates that were on offer not so long ago come back we will need to see a big change in sentiment and the market forecasts. If you have a transfer to make then this week is vital as we have the latest news from the Bank of England which is likely to create some volatility on the market.

If you are considering any transfer involving buying or selling the pound and Australian dollar then making some plans in advance is sensible to avoid any potential surprises in the market. For more information and assistance in achieving the best rates in the market please speak to me Jonathan by emailing jmw@currencies.co.uk.

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.

Will the Pound recover from its multi-month low? (Joseph Wright)

The Pound is currently trading at its lowest level against the Australian Dollar since mid-January.

Whilst Pound Sterling has been losing value against most major currencies in recent weeks as the beginning of the Brexit looms, its losses against the Australian Dollar have been more profound as the Aussie Dollar has been going from strength to strength in recent weeks.

If the Australian economy continues to show signs of growth this year, it will break a new record in terms of successive growth and overtake the Netherlands existing record. Australia is only one month away from entering its 104th consecutive quarter of economic growth without a recession, and the Country also has one of the highest interest rates in the developed world so the demand for the currency is understandable.

Its also worth noting that commodity prices have been strengthening recently which is also a positive for the Aussie Dollar due to the Australian economies reliance on its export driven economy.

With so many positives for the Australian Dollar and the Brexit just around corner, I wouldn’t be surprised to see AUD continue to strengthen and I think GBP/AUD is more likely to dip below 1.60 than exceed 1.70.

One potential downside for the Aussie Dollar though is the possibility of the Reserve Bank of Australia cutting Interest Rates in the hope of the Aussie weakening. If the currency becomes too strong it could weigh on the economy, and this will in the minds of the RBA when they consider interest rate decisions.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

 

Will the strong Australian economy continue to boost the Aussie Dollars value? (Joseph Wright)

The downward trend for the Pound to Australian Dollar looks likely to continue as the Australian economy is continuing to go from strength to strength.

Against many other major currencies the Pound hasn’t fared badly so far in 2017, for example the Pound last week hit its highest level against the Euro so far in 2017.

The Pound’s performance against the Australian Dollar on the other hand has been disappointing as it’s lost almost 5% since the beginning of the year. I personally put this down to Australian Dollar strength as the currency has been boosted by rising commodity prices as well as a strong economy.

In the early hours of this morning the health of Australia’s economy was once again underlined as the Australian Bureau of Statistics reported that GDP for the 4th quarter grew at 2.4%, and this figure was above the expectation of 1.9% analysts were expecting to see.

The GBP/AUD pair has been range bound between 1.60 and 1.70 for a while now but in recent weeks the pair have remained closer to the closer end of that trend, and I do think that if Brexit jitters in the UK increase and the Aussie economy remains on track I can see the pair fall below 1.60.

There has also been some better than expected data out of China in recent weeks which has boosted the Aussie due to the close business relationship between China and Australia.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Will GBPAUD fall into the 1.50s? (Dayle Littlejohn)

The Australian dollar has gained momentum against sterling and since the end of May 2016. GBPAUD exchange rates were fluctuating above 2 and throughout the last 9 months GBPAUD has dropped 38 cents and the next milestone would be to break into the 1.50s.

The reason why the Australian dollar has performed so well against sterling is that the Australian dollar has been strengthening and sterling has been devaluing.

Australian interest rates sit at 1.5% and speculative traders leave their assets within the Australian dollar to make a decent amount of interest. We have seen this occur even more in recent months as speculators have sold off US dollars to buy Australian dollars as Donald Trump policies are a risk for speculative traders. In addition Iron Ore a commodity that Australia heavily rely on as an export has been on the charge and is up 50%.

As for the pound, Brexit continues to steal the headlines and this week the House of Lords are set to give their verdict to whether Theresa May can start the process of leaving the EU towards the end of the March. Some Lords have stated they plan to block the Brexit Bill until amendments have been made. For example some of the Lords believe MPs should have a final vote on the deal Theresa May manages to negotiate with EU leaders.

It has been documented last week that the House of Lords could be abolished if they go against Government, therefore I believe they will not rock the boat and they will approve Theresa May’s Brexit plan. Consequently I expect the pound will come under pressure in the weeks to come and a shift into the 1.50s is on the horizon.

For Australian dollar buyers short term, it looks like trading sooner rather than later may be wise! 

If you are buying Australian dollars with pounds or selling Australian dollars to buy pounds, it’s worth getting in touch and taking advantage of the service we can offer. It’s my job to keep my clients up to date with regular market information, so they can make informed decision to when to purchase their currency.

In addition we can then provide the client with our award winning exchange rates and they can save money compared to using their own bank or their current provider. If you are planning on making a transfer with your bank in the upcoming months, for example if you purchasing a property in Australia or the UK and need to purchase a currency, it costs you nothing to send me an email with your requirements and I will outline in further detail the process of using our company, how you know your money is safe and the options available to you drl@currencies.co.uk. At that point you can make the decision to whether you wish to use our company.

We have the ability to offer our clients different contract options which will help the clients make as much money as possible. For example limit orders are useful when trying to target a certain rate and forward contracts when you are looking to purchase in the future.

I look forward to speaking with you Monday morning.

Will a high inflation reading tomorrow boost Sterling’s value? (Joseph Wright)

Sterling has gained almost 1% against the Aussie Dollar so far during today’s trading session, as hopes of a high inflation figure tomorrow have boosted hopes of an interest rate hike from the Bank of England later in the year.

At 9.30am tomorrow morning I believe that there could be some volatility between Sterling and other major currency pairs, as the inflation readings for January will be released.

Inflation figures out of the UK are being closely watched by foreign exchange markets as over the past year there have been some sharp falls in Sterling’s value which can push up the inflation rate. Also the UK is close to embarking on it’s formal separation from the EU after voting for a ‘Brexit’, so all eyes are monitoring the UK’s economic performance due to the uncertainty surrounding the UK economy moving forward.

The annual inflation figure tomorrow is expected to show a reading of 1.9% which is up from the previous figure of 1.6%. If the actual reading comes out substantially above 1.9% I expect to see a boost in Sterling’s value as the likelihood of an interest rate hike from the Bank of England (BoE) will increase.

The Pound’s value is mostly driven by sentiment at the moment but inflation figures are likely to impact it’s value due to interest rate change expectations, especially as the BoE hasn’t hiked the UK base rate in around 10 years now.

There are other events which could also impact the Pound to Aussie Dollar exchange rate moving forward, and if you wish to be kept up to date regarding these do feel free to get in touch for further information.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.