Tag Archives: buying australian dollars

Huge month ahead for Sterling vs the Australian Dollar with Brexit talks

The Australian Dollar has started to fight back against the Pound especially towards the end of the week in advance of this weekend’s Tory party conference.

During the last few weeks rumours are circulating that some Tory members are looking for a change in leadership especially the Pro-Remainers in the party.

Theresa May claimed last week during her televised statement that under her leadership there will be no second referendum so some in the party think that their only option is to remove her from power. However, this would be deemed as very dangerous politically and would open the door to Labour.

It will be interesting to see how the Tory conference goes this weekend as if there is more division in the party then I think we could see Sterling exchange rates lower as we begin the week.

There are two other huge stumbling blocks ahead for the Pound with the EU summit due to be held on October 18th. Just over a week ago the Chequers plan was rejected by the European leaders and as yet no other alternative has been offered so currently we are at a stalemate with the discussions which does not bode well for the Pound at the moment.

Depending on how the talks go in the next three weeks the EU may also hold an emergency Brexit meeting in November to try and get a deal agreed between both sides so there is a huge amount of volatility coming in the next few weeks so be prepared for any eventuality.

As we saw in June 2016 when the Brexit vote came out we saw huge losses for the Pound vs the Australian Dollar so I think we could see some huge movements if we do manage to get a deal agreed later this month.

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.

Having worked for one of the UK’s leading currency brokers for 15 years I am able to offer you bank beating exchange rates as well as help you with various contract types all with the aim of saving you money.

Please email me with a brief description of your currency requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Pound collapses against the Australian Dollar after Brexit talks stall (Tom Holian)

The Pound collapsed against a whole host of currencies including vs the Australian Dollar after a bad week politically for the UK.

The Pound began to drop on Thursday when the unofficial EU meeting didn’t go very well with a number of EU leaders rejecting the Chequers plan put out by Prime Minister Theresa May.

She criticised the EU and said if they reject her plan then they will need to come up with a plan of their own. Clearly there is no plan coming at least in the short term and this uncertainty caused problems for the Pound vs the Australian Dollar.

Even further losses came on Friday afternoon as Theresa May gave a statement on Brexit and confirmed that a second referendum will not be coming and that she is focused on making sure democracy will prevail. The markets weakened during the statement with GBAUD exchange rates falling below 1.80 after trading above this resistance level for a while.

The Australian Dollar was also given a boost after the Trump administration confirmed that they will not be putting tariffs on Australian steel and aluminium exports.

The Aussie Dollar has been under pressure recently caused by the Trade Wars between the US and China and as China is Australia’s largest trading partner this will often have a negative effect on the value of the Australian Dollar. However, as Trump has not included them in his latest weight throwing exercise this has helped the Australian Dollar to strengthen against Sterling.

The Australian economy had a further boost recently with credit ratings agency S&P upgrading Australia’s credit outlook from negative to stable for the first time in two years.

With the Australian trade surplus improving as well as record growth in employment this has been another reason for the fightback by the Australian Dollar vs Sterling.

As we go into next week the GBAUD is likely to be heavily influenced by the ongoing Brexit saga so make sure you’re well prepared for some volatility ahead for the Pound vs the Australian Dollar.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help you save money when buying or selling Australian Dollars as well as helping you with the timing of your currency transfer.

If you have a currency transfer to make or would like further information as to what is happening to GBPAUD rates then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Selling falls against the Australian Dollar after chances of a No-Brexit deal increase

The Pound to Australian Dollar rate has fallen below the key 1.80 mark during today’s trading session. This is key as the GBP/AUD pair had previously consolidated above this level and traded as high as 1.85 before the recent fall which has taken place because of the Brexit related comments this week.

At the time of writing the EU leaders are all currently in Austria, as they have been for the past couple of days as there is an informal summit taking place. Whilst there have been some positive comments regarding Brexit recently the summit has all together been a negative for the Pound as the currency has fallen dramatically against a range of currency pairs, with the fall against AUD being quite dramatic in terms of recent price movement which has mostly been thin.

Much of the talk revolves around the Chequers deal, and whether or not it will be both the preferred approach of the UK government and also accepted by the EU members, which at the moment is looking unlikely especially after a speech by UK Prime Minister, Theresa May today.

There is a bank holiday down under on Monday of next week, as it’s the Queen’s birthday and there aren’t any major releases until next Friday which means I’m expecting the Pound to be the main driver of currency fluctuation between the GBP/AUD pair.

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.

Could we see further gains for the Pound vs the Australian Dollar this week? (Tom Holian)

The Pound has continued to improve against the Australian Dollar creating the best level to buy Australian Dollars with Pounds since April which is a 5 month high.

The Australian Dollar has weakened owing to the ongoing threat of a trade war between the US and China and as China is such a large trading partner with Australia this is causing the Australian Dollar to weaken.

We also saw an improvement for Sterling during yesterday afternoon’s trading session following the comments made by EU Chief Brexit Negotiator Michel Barnier who suggested that a deal could be in place in the next 6-8 weeks.

However, as we saw what happened last week with GBPAUD exchange rates the comments sent the market up quickly but it then fell shortly afterwards.

Ultimately, the rate to buy Australian Dollars with Sterling is likely to be dominated in the next few weeks with the ongoing Brexit talks but the Trade Wars between the US and China are also causing big problems for the Australian Dollar.

Indeed, the US has threatened to impose further tariffs and have claimed they are ready to go and with China suggesting they may try to match the tariffs Dollar for Dollar this is clearly a big problem for global markets.

We have already seen the Pound make some huge gains vs a number of different commodity based currencies including the New Zealand Dollar and the South African Rand and with the Pound hitting 1.83+ against the AUD yesterday I think we could see further gains coming in the short term.

We have a big day coming on Thursday with Australia releasing the latest set of unemployment down under and this will be followed at midday by the latest Bank of England interest rate decision so be prepared for a volatile end to the week if you’re in the process of making a transfer involving Australian Dollars.

If you would like to save money when converting Australian Dollars compared to using your own bank then contact me directly for further information or a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Will the Australian Dollar continue to weaken, and what’s causing the weakness?

The Aussie Dollar is under pressure at the moment, with the currency hitting a 20-month low against the US Dollar earlier this week which has hit the headlines. This most recent drop off was spurred by a number of major Australian banks such as Westpac, Suncorp and Adelaide Bank have all increased their mortgage lending rates.

The ongoing saga surrounding the US and Canada’s North American Free Trade Agreement has also weighed on the Aussie Dollars value as sentiment surrounding the emerging markets has waned, after the talks between the US and Canada didn’t result in an agreement. The South African rand has also lost a lot of value recently for similar reasons.

No interest rate hikes are expected from the Reserve Bank of Australia until at least this time next year, and with US interest rates now higher than Australia’s the currency has lost a competitive edge which is another reason for the AUD weakening.

Moving forward I’m expecting to see the issues between the US and Canada as well as the issues with China to continue to weigh on the Aussie Dollar’s value. This is because of the Australian economies dependence on a strong global economy especially as the country becomes more service based.

This week there are a few further data releases that will provide us with an overview of the Australian economy, as trade Balance figures are released tomorrow and Home Loan Figures will be released on Friday.

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.

Political turmoil drives the Aussie!

The Australian dollar has really weakened this week as investors struggle to make sense of the uncertainty present in their current political situation. The current Prime Minister is now Scott Morrison, after the ousting of Malcolm Turnbull. Interestingly, the Australian has risen today as the news has settled the immediate uncertainty of a leadership contest.

The Australian dollar had been rising on the improved economic outlook for Australia, investors were backing the RBA, Reserve Bank of Australia to raise interest rates in the future but it really is likely to be longer term. In particular this uncertainty over the economic outlook could prove very damaging for interest rates as investors shy away from making any key decisions with the uncertainty present.

The big question now is whether Mr Morrison can hang on to the position or will he have to call an election to justify his position? Any signs of an election or the actual announcement of an election down under would see the Australian dollar much weaker, clients looking to buy or sell Australian dollars could find themselves in a volatile market if this happens.

The Australian dollar has also risen today on the expectations that there has been progress with Chinese trade talks which might have previously seen the Australian dollar weaker. Whilst the trade wars are bad news, the expectation that they will not massively deteriorate and see huge damage to the Australian economy might help the Australian dollar.

Finally, events concerning Donald Trump should also be a market mover on the Australian dollar, you never quite know what Donald Trump will do or say which can move rates! Lately, the weaker US dollar we have seen has helped the Australian dollar to rise. Further woes and concerns surrounding Donald Trump and his government could lead to a stronger Australian dollar.

For more information on the best rates and strategy to move money internationally at the best prices, please speak to me Jonathan Watson by emailing jmw@currencies.co.uk

Pound makes gains vs the Australian Dollar after Turkish issue and UK inflation data due out (Tom Holian)

The Pound has made some gains vs the Australian Dollar over the last few days and the move appeared to happen following the news in Turkey that Donald Trump has imposed an addition to tariffs on both steel and aluminium on Turkey and this started to cause huge problems in the country.

The Turkish Lira has dramatically weakened in value over the last few days and this has caused a number of commodity based currencies to weaken as global investors have sold off riskier based currencies including the Australian Dollar.

After briefly flirting with rates in the 1.73 levels recently the Pound vs the Australian Dollar is now back to trading above 1.76.

Meanwhile, the Reserve Bank of Australia confirmed recently that it will be keeping interest rates on hold while it waits for economic growth to improve and this has also helped the Pound to make gains vs the Australian Dollar and the Australian Dollar is now at its lowest level vs the US Dollar in two years.

The RBA does not appear to be too concerned with the value of the Australian Dollar and because it is a big export market if the AUD continues to weaken then this could help to improve economic growth in Australia.

The UK and the Pound has had a good start to the week against a number of different currencies with the news that UK unemployment is close to its lowest levels since 1975 with the figure now sitting at 4%.

We could be in for further movement later this morning with the release of UK inflation data due to be published at 930am.

Inflation has been a big factor in the Bank of England’s recent decision to increase interest rates and with the data expected to show 2.5% year on year which is above the 2% target then this could provide further evidence in support of further rate hikes in the UK which could help to move GBPAUD exchange rates in an upwards direction.

If you would like a free quote or further information about how to save money compared to using your own bank when converting Australian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk 

 

 

The reasons why the Pound could climb against the Australian Dollar this month (Tom Holian)

Sterling vs the Australian Dollar has remained in a relatively tight range recently although GBPAUD rates have been trying to hit 1.80 on a number of occasions already this month.

In my own opinion I think it is only a matter of time before the Pound breaks past 1.80 as the Australian Dollar is coming under a lot of pressure recently.

The latest report from China in terms of GDP data has shown a slowdown to 6.7%, which although this is clearly much higher than that of any of the western economies this has caused concern for the world’s second largest economy and this has caused the Australian Dollar to weaken against a number of different currencies including the Pound.

The US has been threatening China with a Trade War and has put in potential plans to raise tariffs of US$200bn to come into play in the next few weeks.

Whether or not this is simply the US flexing its financial power or it will take place is anyone’s guess at the moment but the uncertainty it has caused has made global investors move money away from riskier currencies and towards the US Dollar and this has in turn harmed the value of the Australian Dollar.

Earlier this week the Reserve Bank of Australia released the latest set of minutes and they confirmed that interest rates are likely to be kept on hold for the time being.

With the US planning further interest rate hikes as well as the UK considering doing the same as early as 2nd August this is another reason why we could see the Pound moving in an upwards direction against the Australian Dollar in the next fortnight.

If you have a currency transfer involving Australian Dollars 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 form you.

Tom Holian teh@currencies.co.uk

Trade Wars and Brexit dictate GBP/AUD (Daniel Johnson)

GBP/AUD – GBP/AUD currently remains range bound between 1.75-1.80. The outlook for both currencies is not necessarily the best. The Australian Dollar will find it hard to find a momentum due to the ongoing trade war between China and the US. Australia has a heavy reliance on China purchasing it’s exports, particularly iron ore. The tariffs imposed by the Trump administration are quite severe and with China threatening to match US tariffs Dollar for Dollar this will hit both economies hard and in turn the Australian Dollar.

During times of global economic uncertainty investors tend to avoid commodity based currencies in favour of safe haven currencies. Despite the US initiating the trade war, the US Dollar is proving to be the destination of choice. 10yr treasury bonds currently offer the best returns seen in years and the Federal Reserve have the intention to hike interest rates a further two times by the end of the year.

I feel the trade war with China could be sustained despite the US holding the majority of the cards.

From the UK side, Brexit negotiations will be key the the value of Sterling. Theresa May’s Brexit proposal has taken criticism as it goes against how Brexit was sold to the public.

The proposal includes a free trade deal for goods and agricultural products. This would essentially keep the UK’s rules and regulations aligned with those of the EU. This would allow trade in goods to flow freely and the Irish border would remain open.

The proposal for services however will be different. The UK would like to take back control of services, particularly the financial sector. Services make up 80% of UK GDP. This would result in more barriers for companies’ trading aboard.

The risk of course is that financial services will move abroad. This is a serious concern as the tax income from the financial sector is huge. May intends to reform the existing equivalence regulation where temporary customs union access is granted, but can be removed at anytime. This situation does not fill me with confidence.

Merkel has apparently agreed to a deal behind closed doors.

If the trade war escalates then we could see GBP/AUD breech 1.80 although I do think this would be a long shot. aim to trade in the 1.79s if you have an Australian Dollar requirement.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at dcj@currencies.co.uk . (Daniel Johnson) Thank you for reading.

 

Australian dollar volatile under Trade War and Chinese economic data releases…

The Australian dollar will take its cues early next week from a series of economic data released in China, notably Chinese GDP (Gross Domestic Product) data released very early in the morning on Monday. News from China is very important on the Australian economy and there is no bigger release than GDP since it shows how well the respective economy is performing.

This news is all the more important given the current Trade Wars between China and the US, we are currently facing renewed prospects of increased tariffs which would in most eyes only serve to have a negative effect on the Chinese economy. Surprisingly, against this backdrop we have seen a series of economists for Reuters predict the Chinese economy will actually grow at a slightly faster pace this year.

This is because whilst the Chinese economy could be negatively impacted by the Trade Wars, the momentum in their economy and also the moves by the PBOC (People Bank of China), the Chinese central bank, to stimulate the economy, will all help to stimulate growth in Asian dragon. This will all help to see the Australian stronger if it happens and it will make an interest rate hike down under all the more likely.

Later next week the release of Australian Unemployment data will also prove very interesting for Australian dollar exchange rates, clients looking to buy or sell might find themselves with fresh information to move the rates. Of particular interest would be whether the Unemployment level is likely to have increased to 5.6% versus the previous levels of 5.5%. This would make it less likely we will see the RBA (Reserve Bank Australia) putting themselves on a path to hiking in the future.

The week could start strongly for the Australian dollar if the economic data from China is supportive of the Australian economy, however, it might weaken towards the end of the week if the news is less positive. Into the mix we have to put Donald Trump and the Trade Wars, with his comments at Nato and also in the UK upsetting many, his upcoming visit to Putin next could see some volatility on exchange rates as the market tries to gauge what happens next.

If you are considering any purchase or sale of Australian dollars, next week could be very important as a series of data and news threatens volatility on the currency. To discuss strategy relating to any positions, please don’t hesitate to get in touch with me directly on jmw@currencies.co.uk.