Tag Archives: buying australian dollars

Could the Pound improve against the Australian Dollar this month and possible reasons why? (Tom Holian)

The Pound has been steadily increasing against the Australian Dollar since the turn of the year and although we have seen some small losses for the Pound, generally speaking the market for anyone looking to buy Australian Dollars has been very positive.

With the US threatening to continue raising interest rates the next interest rate hike by the Fed is likely to come in March and this is in part why we have seen the Australian Dollar struggle against the Pound.

On Tuesday the latest set of minutes are due to be released by the Reserve Bank of Australia and I think this could provide the catalyst for Sterling strength against the Australian Dollar as I think the RBA will be relatively cautious in their tone.

If you look at the markets through the eyes of a global investors if you have available funds it is likely that you would look to invest in the US as with interest rates planned to be going up as well as strong growth in the world’s leading economy this could potentially be a good investment.

This could result in a sell off for riskier based currencies such as the AUD and this is why I think in the longer term that we’ll see GBPAUD exchange rates challenge 1.80 before the end of this month.

On Tuesday the UK releases the latest Quarterly Inflation Report Hearings and as inflation has continued to remain higher than the target I think this will put pressure on the Bank of England to look at raising interest rates possibly as early as May.

On Wednesday the latest UK unemployment data is due to be published and although this has been very strong one of the concerns is Average Earnings which have been lagging behind inflation so this could see a bit of volatility for GBPAUD exchange rates in the middle of the week.

If you would like to free quote when buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly. Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of being able to save you money and help you with the timing of your transfer.

Feel free to email me directly with a brief description of your requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Interest Rates in the UK and Australia to set the tone for GBPAUD exchange rates – Could we see GBPAUD rates move towards 1.80? (Tom Holian)

According to the Reserve Bank of Australia interest rates down under may be kept on hold for quite some time. In their most recent statement earlier this week the central bank has suggested that any change will be ‘gradual.’

The latest set of growth forecasts from the RBA will be announced on Friday and although unemployment is looking very strong in Australia there are concerns being raised that Retail Sales are struggling.

Indeed, the RBA governor Philip Lowe has said that ‘household incomes are growing slowly and debt levels are high’, which leads me to think the RBA will keep monetary policy the same until we see more positive news.

The last time we saw an interest rate hike in Australia was back in 2010 and rates have remained on hold down under now for a year and a half so don’t expect any rate changes to be coming anytime soon.

The problem for the economy in Australia is that over the years it has benefited from a higher yield in interest rates for global investors than many other developed economies.

However, with the US having increased interest rates three times during 2017 and on course to increase interest rates again in March this is leading investors to move their money away from commodity based currencies including the Australian Dollar and into the US Dollar.

Overall this is fairly good news for anyone looking to send money to Australia as it means GBPAUD exchange rates have remained positive recently and although we have seen the odd drop in rates, generally speaking the direction has been positive in Sterling’s favour.

Looking ahead to tomorrow the Bank of England are set to meet to announce their latest monetary policy decision and although no change is expected any hints of a rate hike coming further down the line to control inflation could see the Pound go in an upwards direction.

If you have a need buy or sell Australian Dollars in the near future then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Could the RBA meeting on Tuesday be the catalyst to send GBPAUD rates up to 1.80 next week? (Tom Holian)

The Pound has maintained its recent run of good form vs the Australian Dollar during the course of the week ending Friday afternoon with the Interbank level trading at above 1.78 for GBPAUD exchange rates.

Australian inflation data came out lower than expected earlier this week and as we have seen with the UK back in November if inflation rises then the general policy is to raise interest rates.

With inflation down under falling then this means that the Reserve Bank of Australia are much less likely to be looking at raising interest rates in the near future.

On Wednesday evening the US Federal Reserve confirmed that they would be keeping interest rates on hold for the time being although the tone was rather hawkish, which means that a rate hike could be coming.

Indeed, the expectation is currently at 88% that an interest rate hike may occur in March and this is why we have seen the Australian Dollar continue to remain weak.

Global investors are currently offloading the AUD, NZD and ZAR which typically used to have very attractive yields on interest.

However, with the US looking at increasing interest rates as well as having a very strong economy as proved with Friday afternoon’s fantastic jobs report creating 200,000 new jobs in January, money is being ploughed into the US at the moment.

On Tuesday, Australia releases its latest Trade Balance Figures as well as Retail Sales and both will be key to determining what will happen to GBPAUD exchange rates during the course of next week.

The RBA will also announce its latest interest rate decision so if they are quite cautious in their approach could this send GBPAUD rates towards 1.80?

If you have a need to make a currency transfer buying or selling Australian Dollars in the near future then feel free to contact 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Sterling remains strong despite poor data release (Joseph Wright)

The Pound has managed to hold its ground against the Aussie Dollar today, despite some disappointing data being released earlier today.

It’s emerged that the UK construction sector is relatively flat at the moment, and this is similar to the UK manufacturing sector which also saw disappointing data released recently.

Despite this, the Pound is managing to hold onto its recent gains where the currency has moved up into the later 1.70’s after spending much of last year below 1.70. This suggests to me that the Pound has consolidated at its current levels and I think that there is more of a chance of seeing the pair hit 1.80 than 1.70 recently.

I think the Pound has also been helped by Aussie Dollar weakness which has restricted AUD from regaining any ground. An interesting estimate released recently is that there are forecasts of a 20% decline in iron ore prices throughout 2018, and this comes after the commodity lost quite alot of value recently already.

The reason this is significant is because iron ore is one of Australia’s biggest exports, so therefore a drop in the commodities value is likely to result in a drop in export income for the country.

Those watching this pair should also consider that if there is more talk of a rate hike from the Bank of England in May, we could see Sterling climb even higher.

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.

FED interest rate decision to impact Australian dollar exchange rates

This evening the Federal Reserve (United States Central Bank) will release their latest interest rate decision and for the last time Chairlady of the FED Janet Yellen will give her last press conference as Chair. For clients that are buying or selling Australian dollar it’s important to understand that decisions made in the US have a direct impact on Australian dollar exchange rates.

In recent weeks most major currencies have benefited from the demise in the US. President Donald Trump at present is trying to pull the US out of NAFTA which is the trade agreement between the US, Mexico and Canada. These negotiations are on going and could take 12 months. Nevertheless the US dollar has lost value and the Australian dollar has benefited.

The FED decision tonight could indicate whether the UK will raise interest 3 times this like predicted at the beginning of the year or if forecasts have changed. Personally I expect this release to weaken the US dollar further which could benefit most G10 currencies. Later in the week Non farm payroll numbers, which is the amount of jobs created in the US will be released at 1.30pm and this release could also have an impact on exchange rates.

The next key data release to look out for in regards to the Australian economy is the interest rate decision on the 6th. Inflation numbers showed a slight improvement in January, however the Reserve Bank of Australia are unlikely to hint towards any rate hike anytime sooner. Therefore I don’t expect this event to help provide strength for the Australian dollar.

If you are buying or selling Australian dollar 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 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 hit 1.80?

GBPAUD rates have retraced the steps higher taken last week when we briefly hit the 1.77 mark. GBPAUD is now back trapped between the 1.73 and 1.74 range we have occupied for much of 2018. Whilst this pairing could break higher on the better news for the Brexit I do feel there is more chance of the levels testing 1.70 and even potentially being driven back into the 1.60’s.

The most important direct news on the Australian dollar is next week’s interest rate decision which could see the RBA (Reserve Bank of Australia) dropping hints as to when they may next raise interest rates. With tremendous uncertainty over the future direction on monetary policy, there is lots of scope for movement.

The overall expectation for the pound remains that sterling is very much susceptible to future weakness as concerns build over the final outcome from the Brexit plans. As an example, we are about half-way through the Article 50 process ending 29th March 2019, and there are still many vital issues to sort out.

The pound has struggled every time there has been fresh concern over Brexit and it is very difficult to see the next stages progressing without concern. Generally speaking, any deadline for Brexit talks has been missed with late night and last minute meetings usually delivering a final ‘fudged’ and in complete agreement.

The outlook for GBPAUD to rise much higher seems limited to me, I would not be banking on big improvements but the next week will be key. If you have a transfer to make buying or selling the pound and Australian dollar in either direction, perhaps we could offer you some useful information to help maximise your transfer?

For more information on our rates and service, all at no cost or obligation, please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

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

 

Is now the time to sell Australian dollars and buy pounds?

In recent weeks the pound has been making gains against the Australian dollar and I expect this trend to continue in the weeks and months to come.

This weeks UK GDP and Average Earnings numbers exceeded expectation which pushed GBPAUD exchange rates back towards 1.77. Over the last 12 months the Bank of England have made it clear that they are concerned with inflation and low average earnings.

Now that average earnings have started to rise and forecasts are suggesting inflation will fall this year due to the boost in the pounds value, futures market are predicting a 50% rate hike in May and a 80% chance of a hike by November by the Bank of England, which should provide further strength for the pound.

Brexit negotiations are also going well for the UK as trade discussions begun this year and in March we will get a full update of how the trade talks are going. It feels that sentiment has also changed as European leaders continue to back the UK. Last week French President Emmanuel Macron announced the UK can have a special trade relationship with the EU and this wee German Chancellor Angela Merkel speaking at the Davos summit gave hope to UK businesses when she explained she wants to keep the UK as close to the EU as possible post Brexit.

So all in all it’s looking promising for the UK and the pound. However this doesn’t look like the case down under. Many of the leading banks including Westpac are forecasters a slow down for the Australia as interest rates will remain on hold and commodity prices will fall throughout the year.

Economic indicators are suggesting that the pound will continue to make inroads against the Austrian dollar therefore Australian dollar sellers buying sterling should look to make a transfer sooner rather than later.

If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Pound maintains its levels against the Australian Dollar after low Retail Sales (Tom Holian)

The Pound has continued to hold on against the Australian Dollar even after some alarmingly low UK Retail Sales data was published on Friday morning.

Retail Sales especially in December are an extremely important indicator of the UK economy as December is when shops try and make their most money.

With the data for December coming out at 1.4% compared to the expectation of 3% the data typically would have seen a much bigger fall in the value of Sterling. However, this highlights that investors seem to be quite happy holding the Pound at the moment.

The US Dollar has weakened to pre-Brexit levels against the Pound and Sterling has held steady against a number of currencies including vs the Australian Dollar which is good news for anyone looking to send money down under.

Indeed, China’s economy also showed signs of growth which again would typically strengthen the Aussie Dollar as China is Australia’s largest trading partner.

However, some sources have suggested that the figures are not entirely accurate as previous economic figures for the year before were inaccurate and overstated.

As we move into next week one of the most crucial days of the week will come on Wednesday when the UK releases the latest set of both Unemployment data as well as Average Earnings.

The jobs market in the UK has been going very well recently hitting the best levels in decades whilst average earnings have been struggling to stay in line with inflation so if you’re in the process of moving Australian Dollars then keep a close eye out on the data release on Wednesday.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Sterling hits 2 week high vs the Australian Dollar (Tom Holian)

The Pound has hit its best rate to buy Australian Dollars in two weeks after Sterling looks to be starting a fightback against a number of different currencies.

Australian economic data overnight was relatively mixed with the Unemployment rate moving up from 5.4% to 5.5% but the participation rate for December also rose so it appears as though they cancelled out each other.

Also, overnight the Chinese released GDP figures which rose but Retail Sales for December fell. As China is Australia’s biggest trading partner this can often have an impact on Australian Dollar exchange rates but as the data was also mixed this is the reason why we saw little impact on the value of GBPAUD exchange rates.

I think at this time tomorrow we could see further movement on exchange rates when UK Retail Sales are released for December. This will make for very interesting reading as the data will include the festive period and will give us an insight into how the UK economy is performing at the moment.

There have been rumours circulating that the Bank of England are potentially planning for an interest rate hike towards the end of the year. This could be an answer to inflation which is still way above the target at the moment as 3% and another reason for Sterling’s recent gains.

The GBPAUD exchange rate is still close to its recent highs so if you’re considering transferring Australian Dollars it may be worth taking advantage of this short term spike.

If you have a currency transfer to make and would like a free quote compared to using your own bank or simply want to compare rates to buy or sell Australian Dollars against your current foreign exchange provider then feel free to get in touch for a free quote. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to help save you money on exchange rates.

Email me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Will the Pound to Aussie Dollar rate break out of its current trend? (Joseph Wright)

The Pound to Australian Dollar buying rate is continuing to hover around the 1.73 mark at the mid-market level.

Whilst there have been some short term moves away from this level the pairs movements have been relatively tame for the last few weeks, which is quite a change considering how the pair has moved over the past couple of years.

Since the Brexit vote and the fall in the Pounds value due to the shock of the referendum outcome, the pair have remained range-bound between 1.5950 and 1.7950. With the pair currently trading quite comfortably above 1.70 I think it’s fair to say that the Pound is closer to the top end of its 18-month trend as opposed to the bottom, and those planning on converting Pounds into Aussie Dollars should consider this.

Sentiment surround the Australian economy has been buoyed today after Australian Consumer Confidence figures came out better than expected in the early hours of this morning.

This is the best level since the end of 2013 and if economic data releases and gauges down under continue to impress we could see the Aussie strengthen and push the GBP/AUD rate back below 1.70.

If you’re following the pair and would like to be kept updated should there be a big move for the pair, do feel free to register your interest with me.

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.