Tag Archives: buying australian dollars

Australian housing market causes concern for the Australian Dollar vs the Pound

The Pound has made some gains vs the Australian Dollar over the last few days with another increase during today’s trading session.

The market has appeared to have focused less on Brexit and looked closer as to what is happening with the Australian economy.

Westpac has reported more and more clients recently getting in to trouble, which ultimately has led to many clients going in to mortgage arrears which has led to an increase in the number of bank repossessions.

According to reports Westpac has repossessed a total of 550 up from 482 mainly in Western Australia.

ANZ & the National Australia Bank have also reported an increase in mortgage arrears during the previous quarter.

Australian unemployment remains at manageable levels but the increase in repossessions could be a sign of further problems ahead for the Australian economy.

Could the Pound struggle with Johnson in Europe this week?

In the meantime UK Prime Minister Boris Johnson will be visiting German Chancellor Angela Merkel later this week.

This will be followed by a meeting with French President Emmanuel Macron on Thursday. This could cause further movement for Sterling exchange rates as both leaders are likely to stick to their current stance which is no movement on the current EU Withdrawal Bill.

This could cause movement for the Pound as it steers us once again towards the chances of a no deal Brexit and if this is the case this could see the Pound lose some of its gains vs the Australian Dollar later this week.

Therefore, if you’ve got an upcoming requirement to exchange Australian Dollars then make sure you pay close attention to what is happening politically in the UK this week.

Having worked in the foreign exchange industry since 2003 I am confident that I can save you money on exchange rates when converting Australian Dollars . If you need to buy or sell Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

US/China Trade War hurting AUD (Daniel Johnson)

Australian Dollar Forecast

AUD  has proved fragile of late due to several contributing factors. There are domestic issues, such as the high value of living in high wage growth areas. This is causing Australian residents to cut back on retail spending. One of the key issues at present is the knock on effect from the US/China trade war.

Australia has a heavy reliance on China purchasing its’s goods and any effect on Chinese growth can have ramifications on the Australian economy. As the trade war escalates so does the potential for the Australian dollar to weaken. President Trump has recently implemented a further 10% tariff on $300bln worth of Chinese products. The Chinese have retaliated by urging  Chinese businesses  to cease purchasing US agricultural products.

Goldman Sachs believe the trade war could continue for some time which does not bode well for the global economy let alone for Australia who has close economic ties with China.

There is the possibility of further interest rate cuts from the Reserve Bank of Australia (RBA) in 2019 according to the bank Governor, Philip Lowe. This could cause movement for the Australian dollar.

Despite the problems surrounding the Australian economy unfortunately it seems that the problems surrounding Brexit outweigh those down under. Until there is some sort of clarity surrounding the Brexit debacle, I can find  little reason to justify significant gains for the pound.

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 19yrs. 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

Australian Dollar set to improve further against the Pound?

The Reserve Bank of Australia cut interest rates this week to its lowest level in history at 1%. As it was widely expected the markets priced in the rate cut so the value of the Australian Dollar did not feel too much of an impact.

The RBA also hinted that it may be prepared to cut interest rates even further. Since June the RBA has cut rates by 0.5% and so I think the RBA may be tempted to adopt a wait and see approach before changing monetary policy once again.

With the markets expecting interest rates to be cut to 0.75% the GBPAUD exchange rate did not move too much as there was little reason to sell the Australian Dollar.

RBA governor Philip Lowe is due to be speaking on Tuesday and his speech should provide further clues as to when they may make further changes to policy.

Therefore, if you’re in the process of converting Australian Dollars then make sure you pay close attention to Lowe’s speech next week.

The Australian Dollar also improved during the course of this week owing to the latest trade surplus figures on Wednesday. The increase in the goods and services surplus came about owing to the increase in the export market in May.

The other good news came from the Australian housing market as building approvals increased. Although house prices have fallen in recent times down under, the increase in building approvals should be taken as a positive as it means there is an appetite for making money once again in the property market.

Whilst the UK continues to struggle with the uncertainty caused by Brexit and the leadership election I think we could see further improvements in the value of the Australian Dollar.

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

Tom Holian teh@currencies.co.uk

 

 

Australian dollar forecast: Will the Australian dollar weaken ahead?

The latest movements on the Australian dollar have seen the currency slightly stronger as investors buy into the Aussie following a more optimistic outlook on the Trade War concerns, plus the lack of any more immediate cuts from the RBA (Reserve Bank of Australia).  The RBA in their commentary have seen potential for more cuts ahead but have not directly signalled them, hence the Aussie rising.

Clients looking to any Australian dollar transfers might wish to consider the latest developments in these scenarios, as whilst to a degree the potential for the Aussie to weaken is present, the actual turn of events does not seem to be causing this. Allow me to elaborate! Generally, the cutting of interest rates will cause the currency concerned to weaken.

Therefore, with the RBA cutting interest rates, it might be perceived that the Australian dollar would weaken. However, with the RBA not looking to make any more immediate cuts, the currency has actually strengthened. The cutting of rates up ahead could be a factor that would weaken the Australian dollar in the future, clients looking to buy or sell Australian dollars up ahead might benefit from a quick review of their situation with one of our team.

The Trade Wars are another example of the uncertainty up ahead that whilst generally negative for the Australian currency, have also been more positive for the currency lately. The Australian dollar is trading at some of the best rates this year against the pound as the uncertainty of Brexit, plus the recent optimism for the Aussie dollar itself, all helps to lead to the rate dipping below 1.80, into the 1.79’s.

The Australian dollar has not completely shifted the potential for weakness, but with the potential for further cuts ahead, and also the trade wars still possibly an issue in the future. If you have a Australian dollar transfer for the future, and wish for some of the latest news concerning the rates and the market, please do get in touch.

 

Pound to Australian Dollar Forecast – G20 summit and RBA Meeting

Could the US China Trade Wars be finishing soon?

We could be in for a very busy week for GBPAUD exchange rates owing to a number of different factors.

The G20 summit has now concluded and it appears as though talks between the US and China have been improving. Therefore, could this be a sign that the trade wars between the two world’s leading economies are coming to an end?

This should in theory help to strengthen the Australian Dollar against the Pound as the Australian Dollar is often driven by an increase in global risk appetite.

Trump has claimed that he had an excellent meeting with Chinese leader Xi Xingping. He also went on to say that ‘we are back on track’ when questioned about the situation between the two nations.

The Managing Director of the International Monetary Fund Christine Lagarde has also said of the situation ‘While the resumption of trade talks between the United States and China is welcome, tariffs already implemented are holding back the global economy, and unresolved issues carry a great deal of uncertainty about the future.’

Another interest rate cut coming in Australia next week?

Also, next week the Reserve Bank of Australia are due to meet again. Having recently cut interest rates to just 1.25% could we see another interest rate coming on Tuesday?

According to some reports there is a 74% chance of an interest rate cut next week so if this happens we could see losses for GBPAUD exchange rates early next week. There is a huge amount of concern as the housing market in Australia is under a lot of pressure.

Therefore, pay close attention to next week’s RBA decision if you have a currency transfer to make involving Australian Dollars.

I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident of offering you bank beating exchange rates.

If you would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Further rate cuts from the RBA could push AUD exchange rates lower, even against the struggling Pound!

The Australian economy is continuing to show signs of struggling despite the Reserve Bank of Australia’s efforts to mitigate the slowdown, after the RBA cut rates down to the lowest level in it’s history at the beginning of last month. As it stands the base rate of interest sits at 1.25% and there are some market commentators that now believe that the rate could be cut again at least once this year, which some outlining the next cut coming as soon as next month on the 18th of July, which will be the central banks next opportunity to make the decision.

Westpac Bank, which is one of the biggest lenders down under believes that there could be two cuts this year, which demonstrates the perceived weakness in the outlook for the Aussie economy moving forward. Inflation levels are stagnant in Australia and the unemployment level has also been picking up. Property prices have dropped quite dramatically throughout the major cities also and there are no concerns surrounding the construction sector so we could continue to see a sell off in the AUD’s value if these predictions materialise.

The main driver of the Pound will continue to be the Conservative leadership contest which will determine the UK’s next Prime Minister, and also the route for Brexit. Boris Johnson remains the frontrunner, and his outlook differs from that of Jeremy Hunt’s so we could see volatility for the Pound regarding this matter.

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 forecast: Will the RBA cut their interest rates again?

The Australian dollar is weaker this week, following the news that Australian employment data, whilst reasonably positive, was not inspiring enough to majorly turn the tide on the Australian currency. With the outlook on interest rates shifting following very poor GDP (Gross Domestic Product), which recently came in at a decade low, the Reserve Bank of Australia might well be looking to cut their interest rates once again ahead.

I am concerned about some of the more global issues that will influence the Australian dollar too, the prospect of the trade wars deteriorating ahead could be a major concern for the currency. It is likely that the Australian dollar will suffer as investors are fearful over the slowdown in the Chinese economy, this weekend’s G20 Summit will be key in determining what happens next.

If you are looking to buy or sell the Australian dollar, making some careful plans in advance is usually a good idea to try and help mitigate the uncertainty. As a commodity currency, the Australian dollar will often rise and fall on the waning attitudes to global risk and trade. Donald Trump is a real wildcard here and his constant to and fro on the trade wars, is harming sentiment.

Next week, is a series of important economic releases with the Governor of the RBA, looking to make a speech plus the latest RBA Meeting Minutes. In providing information on what lies ahead, we will learn of the latest news and developments we might expect. I predict that Lowe will have to keep the door open to further cuts and this could see the Aussie weaker.

Looking at the general trend and trajectory on the trade wars, I think the Australian dollar could lose more ground ahead. Expectations are mixed over what to expect this weekend, any signs of agreement between Trump and China, could provide some shorter-term relief for the Aussie. However, I do feel that any improvement in sentiment will only be short-term, and there will continue to be a longer net negative concern from the trade wars which will affect the Australian dollar.

Thank you for reading my post and should you have a Australian currency transfers that you wish for assistance with, I would be most interested to hear from you and discuss strategy to assist with the best rates and timings.

Jonathan Watson

jmw@currencies.co.uk

Will the RBA cut interest rates and the impact on the Pound vs the Australian Dollar?

The Pound has really been struggling against the Australian Dollar in recent weeks owing to the ongoing political uncertainty in the UK.

The Pound is now trading at its lowest level against the Australian Dollar in a few weeks and I think we could see further losses ahead for Sterling exchange rates.

Next week the Reserve Bank of Australia will once again meet to decide the future of monetary policy down under.

With the Australian economy coming under more and more pressure recently there is a strong likelihood that we’ll see a cut in interest rates on Tuesday morning.

As this is widely anticipated it may not have the impact on exchange rates that you may think so if you’re banking on a big movement for GBPAUD exchange rates it may not happen.

The main thing to look out for will be the statement from the RBA as if they hint that there are more interest rate cuts planned for the future then this could weaken the Australian Dollar so make sure you pay close attention to the announcement.

Indeed, some analysts think that the RBA should cut interest rates by 0.5% but I think that would be too aggressive for the time being.

We also have the release of Australian retail sales due out on Tuesday morning. Retail sales are a good indicator as to the health of an economy so any further signs of a slowdown will provide the RBA with further justification to cut interest rates.

Then on Wednesday we have another big data release for Australia with the latest GDP data for the first quarter. The expectations are for growth of 2.5% which would be an improvement from the previous quarter of 2.3% for year on year so we could see some volatility for GBPAUD exchange rates during the middle part of next week.

If you have a currency transfer to make and would like to save money when buying Australian Dollars then contact me directly for a free quote and I look forward to hearing from you. I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident that I can also help you with the timing of the trade.

Tom Holian 

teh@currencies.co.uk

 

May’s future in doubt (Daniel Johnson)

Pound to Australian Dollar Forecast

Sterling has suffered of late due to the current situation on Brexit, Brexit being one of the key drivers on GBP/AUD. We recently saw a spike up to 1.88 following what was deemed to be positive news on Brexit. May’s talks with Corbyn over a deal that could be mutually acceptable from both Labour and the Conservatives caused the Spike. I believed the gains for Sterling would be short lived as I had little faith the talks between May and Corbyn would result in a deal that would pass through the House of Commons. This proved to be true.

I believe Sterling could be in for further losses as if Farage’s becomes the UK’s representative in the bloc, it would show a huge power shift away for m the usual top contenders, creating further political uncertainty. Many believe if he does prove to be  successful this could be the final nail in the coffin for May and she will be forced to step down, she has proved extremely resilient up to this point however.

May made a speech yesterday and she stated the House of Commons vote on her deal may now be delayed from the first week of June. This was not taken well and has seen her unpopularity grow. The thoughts in many of the voters minds is no doubt that if her deal fails to be passed she will resign.

I think the vote is destined to fail when it takes place, this may be already factored into GBP/AUD to some extent as the market moves on rumour as well as fact, but I think this could also cause the Pound to lose value. The usual market reaction if a leader of a Country steps down or is ousted is that the currency in question would weaken, however in this situation we could see the opposite as anew Tory party leader may be deemed to have a better a chance of sorting out this Brexit mess.

The Aussie has had it’s own trouble, Australia has a heavy reliance on China purchasing it’s goods and services and any decline in Chinese growth will impact the Australian economy and in turn the Australian Dollar. The escalation in the US/China trade war is causing investors to move away from riskier commodity based currencies such as AUD for safe haven investments.

There is also the probability of an interest rate cut from the Reserve Bank of Australia next month, so despite the potential for further Sterling gains it may be wise to move before the decision if you are selling the Aussie.

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 18yrs, 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 election to set the tone for Pound vs Australian Dollar rates

Australian Election this weekend

We are now just days away from the next Australian election due to be held this weekend.  According to a number of polls the voting is very close but current Prime Minister Scott Morrison appears to be the preferred person to continue to lead the country.

There have been a number of elections during the last ten years and this has often caused the Australian Dollar to suffer as a result owing to the uncertainty during an election campaign.

At the moment the voting appears to be very close with hours to go before the polling stations close.

Scott Morrison is the current Prime Minister and if he stays he will have a long term in power owing to a recent change in legislation.

However, at the time of writing Nine’s exit poll has predicted that Bill Shorten will win with a a 2.4% swing towards the Labor party.

If Labor do win then this could have a big impact on the Australian economy.

In previous weeks a number of leading businessmen have spoken out against a Labor government as they believe this could lead to negatively impact upon the Australian economy.

With 150 seats up for grabs in the House of Representatives and 40 of the 76 seats in the Australian Senate expect to see a lot of volatility for the Pound vs the Australian Dollar over the next few days.

Therefore, it will be very important to see who wins over the next day as this could have a big impact on the value for the Pound vs the Australian Dollar. Therefore, if you’re in the process of making a currency transfer involving Australian Dollars then pay close attention to this weekend’s election news.

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.

Tom Holian teh@currencies.co.uk