Tag Archives: buying australian dollars

Will the GBPAUD rise back to 1.70?

The pound has slipped below the 1.70 mark we briefly touched as investors initial excitement at the prospect of a UK interest rate hike begins to fade. The pound soared last week breaking the 1.70 mark but this was not sustainable, the Australian dollar has been much weaker too but we have seen it regain some strength back too. With almost 5 cents improvements from the worst rates in a very short space of time there are some very good arguments for buying Australian dollars with pounds at present, however there is more important news this week that could influence the rates.

A more optimistic tone from the Reserve Bank of Australia’s Minutes released this week also predicted two hikes in 2018 and talked of the recent highs in Iron Ore prices, all positive news that has helped the Aussie. This is all in contrast to last week when a board member Harper stated he felt that there was little the RBA could do and that the main driver on the AUD was movements on the US dollar.

Big news this week will be the US Federal Reserve Interest rate decision this evening. There is a very strong relationship between the US dollar and the Australian dollar, investors will essentially look to capitalise on the stronger interest rates in Australia but with the US also on a path to raising their own interest rates we could easily see big swings.

Governor Philip Lowe is also due to speak tomorrow and his comments will be watched closely for signs of how he views the possibility of raising interest rates. Friday we have a very important speech from Theresa May in Florence on Brexit which could really see the pound stronger if as expected she indicates a commitment to paying some form of Brexit bill.

GBPAUD is much improved and may well rise higher but it would be a shame for Aussie buyers to miss out on the current much higher rates. If you have a transfer to make and wish to get some extra information to help make a decision on an exchange please contact me Jonathan watson by emailing jmw@currencies.co.uk.

Australian Dollar to Pound exchange rate drops as Australian GDP data disappoints, will there be a reversal of the AUD/GBP trend? (Joseph Wright)

The Australian Dollar has recently strengthened quite considerably against the Pound, although the trend has been reversed this morning after Australian GDP figures failed to impress the markets enough for the bullish run to continue.

During the second quarter of this year the Australian economy grew at a rate of 0.8% which was in line with what economists were expecting, and it appears that the Aussie Dollar will need some more positive data to come out in order for the currency to once again reach its post-Brexit vote highs.

The Pound has been coming under pressure in recent weeks after fears surrounding the final ‘Brexit Bill’ cost have surfaced, as well as uncertainty surrounding how the Brexit negotiations are going so far with some suggesting they have got off to a bad start.

Yesterday data out of the UK showed that the services sector within the UK has hit an 11-month low which is important sector for the UK due to it accounting for around 80% of the UK economy. Despite this negative news the Pound is still climbing against the Aussie Dollar which to me demonstrates that the Aussie Dollar bullish run is potentially coming to an end.

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 GBPAUD rise or fall in September?

I have been suspecting that GBPAUD will be falling fairly soon back under 1.60 as the problems ahead for the UK come further to the surface and investors continue to back the Australian dollar. Markets are bracing themselves for further uncertainty over Brexit and with the UK’s economic data going from worse to worse as the uncertainty continues we will undoubtedly see the pound continue to struggle in the future.

With the pound likely to remain at the mercy of Brexit developments and no concrete news expected until 2018, clients holding sterling awaiting any quick turnaround could be waiting some time. A further deterioration in the outlook could really be on the cards, the one thing markets do not like is uncertainty.

Another factor in the GBPAUD equation that is not helping AUD buyers is the Australian dollar is getting stronger. This is because the economic conditions in Australia are very positive and we have also had the currency finding favour from uncertainty elsewhere. Essentially the Australian dollar is used by investors because it offers a very high interest rate. So investors will buy the Australian dollar to get a higher return on their funds.

Australia offers 1.5% interest from the central bank whereas many other countries are offering much less, some are offering zero interest! Therefore in the absence of any possible rises in interest rates elsewhere the Australian dollar is being used by investors to park their cash to benefit from the rates, therefore it strengthens.

So there is a strong likelihood that the continuations of the current trends will weigh further on the GBPAUD exchange rate, I would not be surprised to see the levels slip below 1.60. If you are considering making a transfer buying the Australian dollar in the future I would suggest making some plans sooner than later is the best way forward.

To discuss the latest trends and themes and get the latest news on the rates please feel free to highlight any possible transfers to us. Please email me Jonathan Watson on jmw@currencies.co.uk to discuss and learn more!

Will Brexit uncertainty continue to push GBP/AUD lower, and will we see trade levels below 1.60 again this year? (Joseph Wright)

Economists appear to be concerned by the almost daily dropping of the Pound, as uncertainty surrounding the terms of the Brexit deal are putting alot of pressure on the Pounds value.

Many are predicting that the pound will be trading lower into 2018 than current levels, and although this blog is focused predominantly on the GBP/AUD exchange rate I think it’s useful for our readers to know that many major institutions are predicting that the Pound will fall below parity against the Euro for the first time in 2018.

Interestingly earlier this week the National Australian Bank predicted that the Australian Dollar will actually lose value against the Pound between now and the end of the year, although only marginally.

This prediction appears to buck the trend of general negative outlooks surrounding the pound as concerns over the UK economy as we enter Brexit are generally outweighing other factors.

This weekend there could be movement for the Pound to Aussie Dollar exchange rate as a number of key financial figures such as US Fed Chairlady Janet Yellen and European Central Bank president Mario Draghi will be speaking Jackson Hole central banking conference. This will be happening out of hours so expect any major announcements to impact the rates perhaps late tonight or when markets open next week.

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 pressure on Sterling result in further falls for GBP/AUD, even if the RBA doesn’t want a stronger Aussie Dollar? (Joseph Wright)

There has been a lot of talk recently from both economists as well as the Reserve Bank of Australia that the Aussie Dollar is an overvalued currency.

Of all the major currencies the Aussie Dollar is the 4th best performer so far in 2017, and whilst this sounds like a positive thing to many the reality is an overvalued currency isn’t great news for export driven currencies due to the fact that it makes purchasing goods from Aussie more expensive, and therefore negatively impacts the economy.

The issue the RBA have is that cutting interest rates again in order to stem demand for the currency isn’t easy, as the likely market reaction within the property market would be negative. This is why I don’t think there will be a rate cut, as the property market is already overheating and if they make mortgages even more affordable that problem could spiral, especially in the East-cost of the country where property prices are already very high and unaffordable in many cases.

The Pound is coming under increasing pressure due to the Bank of England’s decision not to raise interest rates, and also just yesterday it emerged that the BoE’s forecast for the UK economy in 2017 isn’t going to grow at the rate they had previously expected.

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.

 

Pound to Australian Dollar improves despite IMF downgrade, is this a sign that the Pound is oversold? (Joseph Wright)

I wrote last week about how some analysts as well as members of the Reserve Bank of Australia are becoming concerned that the Aussie Dollar is becoming overvalued and higher than it perhaps should be, and I believe we will continue to hear similar commentary in the upcoming months.

Earlier in the year the Pound to Aussie rate hit the mid 1.70’s whereas the pair are now trading closer to 1.50 than 1.60. Since the Brexit the lowest the pair have fallen to is to a mid-market level of 1.59 so i don’t think we can rule out another move to these low levels as we don’t require the GBP/AUD pair to do something they haven’t in recent history.

In the early hours of this morning the Pound started off on the back foot after the International Monetary Fund (IMF) downgraded both the UK and the US growth forecasts for the rest of this year.

Throughout the day though the Pound has climbed, not just against the Aussie but across the board as the Pound as gained against all major currency pairs today.

Despite this boost I think that we could see the Pound trade at lower levels, especially if the UK inflation rate continues to under-perform and the likelihood of a rate hike from the Bank of England continues to dwindle.

If you have a 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.

Reserve Bank of Australia appear unhappy with ‘overvalued’ Australian Dollar, will they take action? (Joseph Wright)

The Aussie Dollar has not only gained a substantial amount of value against the Pound in recent months, but also against most other major currency pairs.

With the Reserve Bank of Australia (RBA) already suggesting that there will be no further interest rate changes this year, they now have the issue of an overvalued currency which is a negative for an economy like Australia’s due to it being so heavily export driven.

The reason the RBA is unlikely to amend the interest rate is due to fears of a heavy impact on the already overheating housing market, as making mortgages easier to come by would most likely cause even further issues for house prices down under and especially on the East coast.

The Australian Dollar is now this year’s best-performing major currency so those looking to exchange AUD into another currency should bear this in mind.

Moving forward I think there’s a chance that we could see members of the RBA attempt to jawbone the currency as they will be looking to keep Aussie exports competitive.

The Pound is coming under pressure as Brexit negotiations take place this week in Brussels, and I think there is always the chance of a update on these which could move the markets.

If you have a 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 GBPAUD rise or fall in the coming weeks?

The Australian is really benefiting from much improved certainty around the outlook on interest rates. Interest rates are a key factor in determining the relative strength and weakness of a currency and this is of vital importance for the Australian dollar. Viewed by investors as a good currency to hold because of the higher interest rates, the Australian dollar will rise in value if investors believe that interest rate will go up in the future. If you are buying Australian dollars the shorter term outlook is not great, it is likely the Aussie will make further gains. If you have a transfer to make buying or selling Australian dollars this information will be vital to the rate in the future.

The Reserve Bank of Australia confirmed that they could well be looking to raise interest rates in the future which has helped the Australian dollar to rise against the pound. The pound is actually much weaker too since Inflation has been falling in the UK at the latest release, this reduces the chance of an interest rate hike. Clients looking to buy or sell Australian dollars for pounds could see GBPAUD test closer to the 1.60 in the next few weeks but longer term it might well recover. Only two weeks ago we were headed to 1.70 so to be where we are now is a surprise in some respects. Events could quickly change again!

News that might help would be the US dollar strengthening again. The USDAUD rate is of real importance to GBPAUD since as USDAUD is the most heavily traded currency pair, the movements on US dollar to Aussie will ‘weigh’ on GBPAUD rates. So for example lately the US dollar has been weakening, this has helped the Aussie to rise which has affected GBPAUD too.

GBPAUD is on the slide but could quickly make a recovery! Every 1 or 2 cents on a big volume of currency can make a difference of thousands so if you have a transfer to consider and wish to get the best rates and help with the timing of any deal please speak to me Jonathan Watson by eamiling jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from and assisting you.

 

Australian dollar overvalued? (Dayle Littlejohn)

In recent times major central banks including the European central bank, Bank of England, Bank of Canada and the Federal Reserve have been taking a hawkish approach and indicating that they could be raising interest rates in the near future. When a central bank raises interest rates we tend to see the currency strengthen as investors flock to the currency.

However the tone from the Reserve Bank of Australia was far from hawkish when they released their latest monetary policy decisions over a week ago. The National Australian Bank believe that the Australia dollar is overpriced at present and if the RBA gave a hawkish statement the dollar would be purchased further and therefore increase in value.

Looking further ahead the NAB believe the Federal reserve will continue to raise interest rates which will mean investment will leave the Australian dollar and strengthen the US dollar, and I have to agree with the predictions.

In relation to GBPAUD exchange rates I expect the Australian dollar to devalue slightly however the golden question is whether this will outweigh Brexit? I fear at any point Brexit negotiations could reach a stumbling block and therefore the pound would weaken dramatically.

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! **

Could the Pound vs the Australian Dollar make a sustained break past 1.70? (Tom Holian)

The price to buy Australian Dollars with Pounds has broken through 1.70 on a number of occasions through out today following the Reserve Bank of Australia’s decision to keep interest rates on hold.

May investors were hoping for more of a hawkish tone which means an interest rate hike but the RBA was rather cautious and stayed very neutral with its announcement.

Australian interest rates are currently sitting at 1.5% which is the lowest they have ever been and as they were kept on hold this has seen the Pound making gains vs the Australian Dollar.

The RBA are also concerned with how strong the Australian Dollar is against both the USD and the Pound and if they suggested an interest rate hike could be coming this could result in further strength for the AUD vs the Pound.

RBA governor Philip Lowe has stated that ‘consumption growth remains subdued, reflecting slow growth in real wages and high levels of household debt.’ These combinations mean that any rate hike could cause problems for the economy down under hence the soft rhetoric.

Indeed, any suggestion of any interest rate change coming was not mentioned so for me I think we could see further short term gains for the Pound vs the Australian Dollar coming soon.

The next catalyst for GBPAUD movement could come on Thursday with the release of the latest Australian Trade Balance data so keep a close eye out for what happens.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to save you money on exchange rates compared to using your own bank when buying or selling Australian Dollars.

If you have a currency transfer to make and would like to save money then email me directly with a quick description of your requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk