Tag Archives: buying australian dollars

Pound against the Australian Dollar falls as RBA may not cut interest rates

The Australian Dollar has seen some signs of strength recently as it appears as though the Reserve Bank of Australia may not be looking at cutting interest rates as soon as previously expected.

The Trade Wars between the US and China also appear to be getting closer to a resolution and as China is Australia’s largest trading partner this has helped the value of the Australian Dollar.

Australian is also a huge producer of Iron Ore and its main export market is China. Australia has approximately 65% of the global market and any price change in the value of the commodity will often affect the value of the Australian Dollar.

Chinese demand has started to increase for the commodity and rumours are increasing that many Iron ore mines in Brazil are due to be closing. This means that global supply will reduce which will in theory increase demand for Australian iron ore.

However, although the news is good concerning the news above, the risk going forward is that of the Australian election which is due to take place in just over a month’s time.

Labour are doing well in the polls so a change in leadership could see the Australian Dollar come under pressure once again so make sure you keep a close eye out on the election campaign as this is likely to have a big impact on the Pound against the Australian Dollar.

Meanwhile, the ongoing uncertainty caused by Brexit has caused the Pound to weaken marginally against a number of different currencies which is good news for anyone looking to buy Pounds at the moment as GBPAUD exchange rates are at the lowest rate in two months.

If you have a currency transfer to make and would like to save money on exchange rates then contact me directly for a free quote and I look forward to hearing from you. Having worked in the currency industry since 2003 for one of the UK’s leading currency brokers  I’m confident that I can save you money compared to using your bank for the transfer of Australian Dollars.

Tom Holian teh@currencies.co.uk

 

 

Will the Pound increase after the Brexit vote next week?

The Australian Dollar has continued to struggle recently against the Pound hitting the best rate to buy Australian Dollars since June 2016 this week.

Since the lowest point in December the Pound has improved by as much as AUD14,500 on a currency transfer of £100,000 highlighting the importance of keeping up to date with current events both in the UK and Australia.

The Reserve Bank of Australia have continued to remain in a rather neutral position concerning monetary policy by keeping interest rates on hold earlier this week.

The Australian economy has continued to show signs of concern during recent months and this is clearly being reflected in what is happening with the Australian Dollar at the moment.

The Australian economy is also heavily reliant on both growth and demand in China and with the world’s second largest economy slowing down this is causing the Australian Dollar to weaken.

Problems with coal coming in to China from Australia have hit the headlines recently and it appears to be only directed at Australia rather than other countries who trade with China so is this a political move by the Chinese who are maybe punishing Australia for their support to the US concerning the recent Trade Wars between the US and China?

Turning the focus back towards what is happening in the UK and we have a number of key votes due to take place in the House of Commons surrounding Brexit.

On March 12th the House of Commons will hold their ‘meaningful vote’ about what MPs think of the current Brexit deal on offer. The likelihood is that it will be voted against and this means the following day will see a vote on whether or not MPs will back a ‘no deal’ Brexit.

Therefore, I expect a huge amount of volatility on GBPAUD exchange rates and could this see the Pound break past 1.90 against the Australian Dollar.

I have worked for one of the UK’s leading currency brokers for over 16 years and I’m confident that I can save you money on exchange rates compared to using your own bank so if you would like a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

 

RBA expected to keep rates on hold, but could GBP/AUD see further gains this week?

Over the past week we’ve seen the GBP/AUD rate hit the headlines after the rate hit an almost 3-year high. With Brexit now just a few weeks away the Pound has defied many expectations and strengthened across the board of major currency pairs with GBP/AUD hitting 1.8732 at its highest point. At the time of writing the pair remain north of 1.87 on another strong start for the Pound so I wouldn’t be surprised to see the current 52-week high of 1.8732 tested again, if not today perhaps later this week.

Sterling has been climbing since the path for Brexit became clearer, and a number of MP’s have suggested they could support the Prime Ministers Brexit deal when the next vote takes place. The next meaningful vote will take place on the 12th of this month and after Theresa May lost the last key vote on this matter by a record margin I expect all eyes to be watching the Pound and the outcome of the vote on the 12th.

This evening UK time the Reserve Bank of Australia (RBA) will announce their next interest rate decision. No changes are expected from the record low of 1.5% but the comments afterwards from the RBA could impact AUD exchange rates so it’s worth being aware of this release as the last time the RBA made some dovish comments and indicated that there could be further cuts we saw the Aussie Dollar sold off.

I expect political updates from the UK especially regarding Brexit to remain the main drivers of currency fluctuations owing to the Brexit being just a few weeks away now.

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/China Trade War and Brexit dictate GBP/AUD (Daniel Johnson)

Progress in US/China talks

Due to Australia’s heavy reliance on China purchasing its goods and services any fall in growth from China has an impact on the Australian economy and in turn the Australian Dollar.

The US/China trade war is a huge concern amongst investors, a trade war between the world’s two largest economies has huge implications. The Trump administration wants China to change its economic strategy, something Chinese President,  Xi Jinping will be reluctant to do. The changes that are being asked for would hit the Chinese economy hard and  long term. It may be the case that the Chinese will try and give very small concessions in  bid to lengthen the trade war and out last Trumps reign. A dangerous game considering the US has threatened to increase tariffs to 25% should their terms not be met. 25% is a huge increase and if China retaliate both economies will suffer not to mention the global impact.

At present, trade talks seem to be progressing well.  When asked about how talks were going yesterday in Beijing, US Treasury Secretary , Steven Mnuchin replied “so far so good.”

If it were not for the lack of clarity surrounding Brexit I think Sterling would be making gains against the Aussie. Although, the pound could lose value as negotiations with Brussels intensify I think the likely outcomes are either an 11th hour deal or an extension, both of which could cause significant Sterling strength. Morgan Stanley recently suggested there was less than a 5% chance of a no deal scenario. The market moves on rumour as well as fact so due to a no deal Brexit being largely factored out of the equation at present, if it were to occur expect  a large drop in the pound as this outcome is definitely going against the grain.

If you have a currency requirement I will be happy to assist. If you let me know the details of your trade I will endeavour to produce a free trading strategy. During a period of such uncertainty it is important to be in touch with an experienced broker if you wish to maximize your return. We have tools at our disposal to make sure you do not miss out if there is a spike in your favour.
If you already have a currency provider in place. Drop me an email with what you are being offered and I am very confident I will be able to demonstrate a significant saving. It will only take you two minutes and I am sure it will be worth your while. You can trade in safety knowing you are with a Foreign Currency Direct PLC, a firm trading for over 18yrs and FCA registered.If you would like my help feel free to email me at dcj@currencies.co.uk.

Pound remains strong against the Australian Dollar even after poor UK GDP figures

The Australian Dollar has continued to struggle against the Pound hitting 1.82 during today’s trading session creating some good opportunities for anyone looking to convert Pounds to Euros at the moment.

The Reserve Bank of Australia was relatively dovish during its recent press conference and accompanying statement and it appears as though the next rate change for the central bank down under could be a rate cut in the future.

One of the reasons why the RBA has yet to make a change to interest rates is owing to the recent higher than expected inflation data, which although lower than the 2-3% target has been rising recently.

Typically if inflation rises then the usual strategy to combat this would be to increase interest rates but as the property market in Australia is showing real signs of slowing down then an interest rate rise down under could cause big problems for the Australian housing market and could send home owners in to negative equity.

According to many sources an interest rate cut before the end of 2019 now seems like a certainty and this is part of the reason why the Pound continues to remain relatively strong against the Australian Dollar.

Whilst the Trade Wars between the US and China continue to rumble on then global investment appears to be bypassing the Australian Dollar in favour of the US Dollar and this is another reason for the continued weakness of the AUD vs the Pound.

Earlier on today UK GDP showed a slowdown for the final quarter of 2018 combined with some lower than expected Industrial and Manufacturing Production data but this did little to negatively impact Sterling as the market appears to be waiting to see how the Brexit talks will progress during the course of this week.

I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident that not only can I help you save money on exchange rates compared to using your own bank but also help you with the timing of your currency transfer. For a free quote then contact me directly via email with a brief description of your currency requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Australian dollar mildy firmer after RBA Meeting!

The Australian dollar has been mildy firmer after the RBA, Reserve Bank of Australia, kept their interest rates on hold overnight. The expectations for the RBA is to have moved their outlook to a slightly more dovish tone but overall they kept up their current viewpoint, which is essentially that they will keep interest rates on hold for now.

The RBA did cite increased global risks, which could lead to a lower economic outlook in the future. This might well prove indicative for future Australian dollar weakness, there is now increased expectations that the longer term future for the Australian currency remains subdued. However, for now, as the RBA are not directly forecasting a rate cut, the market is likely to err on the side of caution.

In other news overnight the latest Australian Retail Sales figures weighed slightly on the market, coming in slightly worse than expected. This could be another sign of what the future might hold and be an indicator that the Australian dollar might in the future be struggling.

Some of the downside risks for the currency include global events such as the Trade Wars with China, and also recession in Italy. With the IMF recently having downgraded global growth, we could see the Australian currency lose value longer term if global confidence does not improve.

I expect the Australian dollar to weaken longer term and think clients looking to sell the currency would be better to move sooner than later, to avoid the risk of any losses. The Australian currency is effectively a barometer of sentiments on global trade and with those sentiments likely to suffer further, it seems likely the currency will fall in the future.

Next week is a series of Australian releases, including Home Loans and also some Chinese data. With Chinese economic news weighing on the economic outlook for the region, clients with Australian dollars to sell might wish to take advantage of the more recent improvements and lock in their gains.

Thank you for reading and please let me know if you have a transfer that we might be able to help out with, or you wish to discuss.

Jonathan Watson

jmw@currencies.co.uk

 

Pound sees signs of a struggle against the Australian Dollar after Brexit discussions

The Pound has started to fall during the course of this week against the Australian Dollar as the Brexit talks appear to be struggling to make too much headway.

The recent amendment about the Irish backstop was voted through the House of Commons, which means that Theresa May will try to go back to the European Union in an effort to change the current terms of the backstop.

However, all throughout yesterday European leaders confirmed that the current Brexit deal on offer will not be renegotiated and this moves us towards the chances of even having a no deal Brexit.

Overnight, the Australian Dollar had a boost after the announcement made by the US Federal Reserve that they will be keeping interest rates on hold.

The statement made by Jerome Powell suggested that the Fed would not simply look at economic data but also listen to businesses and this means that the cycle of rate hikes may not be as quick as many had previously anticipated. Clearly, there is room for further interest rate hikes to occur in 2019 in the US but the statement from last night means that they may be slowing down their cycle.

The good news for the Australian Dollar is that global investors will move money away from the US and back into more riskier currencies including the Australian Dollar and this is in part a reason for the strength overnight.

I have worked for one of the UK’s leading currency brokers for 16 years and I’m confident that with my experience I can help you with the timing of your currency transfer.

If you would like to save money on exchange rates when buying or selling Australian Dollars and would like a free quote then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Sterling climbs as May’s Brexit deal is emphatically rejected

It’s been a volatile 24-hours for the GBP/AUD exchange rate, as the Brexit talks ramp up and the UK parliament decides how best in carry out the Brexit.

Late yesterday evening the UK Prime Minister, Theresa May’s Brexit deal was overwhelmingly voted against by Parliament. The amount of votes she lost by was in the top-end of expectations, as she lost by 230 votes with was a much larger number than many analysts had expected.

Since then, the leader of the opposition (Jeremy Corbyn of Labour) has called a ‘vote of no-confidence’ in the government which will take place this evening. May is expected to win as no members of her own government have announced that they will vote against her and the DUP Party of Northern Ireland has also offered their support.

Tonight’s vote at 7pm is the next step in the Brexit process that could impact the Pound’s value, but what happens next is now quite unclear. The existing government has 3-days to announce their plan-b which could also be a market mover, so if you wish to be updated in the event of a major market movement do feel free to register your interest.

The Aussie Dollar, like the stock markets in the region remain under pressure whilst we wait for more clarity on global growth and trade war concerns between China and the US. The GBP has regained a lot of ground against AUD recently and last nights vote has helped. The pair are currently trading in the 1.79’s so it will be interesting to see whether the pair will manage to break through the psychological 1.80 level.

Moving forward I expect to see the pair continue to be driven by Brexit related updates, although early tomorrow morning there will be a number of releases from Australia concerning new home sales and inflation data.

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.

Will the Australian dollar weaken in 2019?

The Australian dollar is likely to weaken in 2019 as the concerns over Trade Wars intensify amongst investors. There is a growing concern that in the future the market will be more uncertain and the Australian dollar, as a commodity currency is likely to be weaker in the future. Clients with a position buying or selling the Australian currency should be strapping themselves in for a volatile period as the market tries to second guess what lies ahead.

In nearly every forecast for the year ahead I have read, the AUD is noted to come off worse from a worsening Trade Wars situation under Donald Trump, showing no signs of backing down and seeking to challenge China’s economic plans. Clients with a position buying or selling the Australian dollar will have a tough time in the future to try and second guess the market but as the Aussie dollar reflects global attitudes on trade, the likelihood is that the currency will weaken.

Clients who need to make an exchange should note not just the changing global attitudes on trade but also the negative political and economic effects at home in Australian too. Whilst the market had been pricing in for an interest rate hike in the future, some are now suggesting that the RBA, Reserve Bank of Australian will in fact be forced to look at an interest rate cut instead. This could send the AUD into a downward spiral as investors look for more comfortable and stable stores of value.

2019 is shaping up to be a more uncertain time on the currency markets as investors struggle to make sense of the changing global economy that lies ahead. Investors will struggle to find the Australian dollar an attractive currency to hold, particularly when the US dollar is now offering a higher return with a higher rates of interest on offer.

If you have a transfer to make and wish to consider the latest news and trends which will move the market, please do not hesitate to get in touch to discuss further.

Jonathan Watson

jmw@currencies.co.uk

The Pound hits a 6 week high against the Australian Dollar owing to Australian housing market problems

The Pound vs the Australian Dollar has hit a 6 week high which is good news for anyone looking to send money to Australia.

The spike has occurred in part due to the tightening lending standards in Australia which has caused a problem for the Australian housing market and this has seen house prices fall in recent times.

This is a big reason for the Reserve Bank of Australia keeping interest rates on hold and with the US Federal Reserve recently raising interest rates for the final time this year global investors have been selling off the riskier based commodity currencies including the Australian Dollar, New Zealand Dollar and South African Rand in favour of a more stable US Dollar.

The mortgage companies as well as the banks have been previously lending to people without clearly identifying whether or not they would be able to afford to pay back the loans and this means that Australian banks are now paying the price for the previous problems.

In Perth, which is one of Australia’s largest cities, house prices have fallen by over 15% in the last four years and Sydney and Melbourne have also started to see a small slowdown and this means any interest rate hike down under in unlikely to be coming any time soon as this would have a direct impact of the Australian property market.

With the Reserve Bank of Australia due to be keeping interest rates on hold for the foreseeable future and the US Federal Reserve likely to keep on raising rates in the early part of 2019 I think we are due to see further Australian Dollar weakness ahead so if you’re looking to exchange Australian Dollars into Sterling it may be worth getting this organised in the near future.

The one problem that could halt Sterling in its tracks is that of the ongoing Brexit turmoil which could cause a problem for Sterling.

With the next Brexit vote due to be held in the second week of January this could cause further volatility so make sure you’re well prepared for any eventuality.

Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to save you money on exchange rates compared to using your own bank but also help you with the timing of your transfer.

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

Tom Holian teh@currencies.co.uk