Tag Archives: buying australian dollars
GBPAUD Exchange Rates break through 1.55+
With the recent slowdown in China, some mining companies down under showing lower profits and Australian interest rates cuts this year we have seen the GBPAUD exchange rate improve by 8% since March and my feeling is that the current trend will continue in the short term. The problem that the country faces is that the mining industry is affecting the rest of the country and with such a strong Aussie Dollar it may potentially harm the economy. I think we will see further interest rates cuts towards the end of this year and we could see improved exchange rates from where we are now.
This week we have seen the Bank of England improve growth forecasts which has given Sterling a welcome lift not only against the AUD but also most other currencies. With inflation high and growth forecasts up we can expect to see the Pound gain as high inflation creates an argument to perhaps either keep interest rates on hold or even postpone further Quantitative Easing.
As one of the best performing currencies during recent years it could be time for the Aussie Dollar to start its slip back so keep an eye on what is happening in both China and the UK in order to see what may happen next. If you have a currency requirement to make and would like to use a specialist currency broker to save you money when buying Australian Dollars feel free to contact me directly for a free quote Tom Holian teh@currencies.co.uk Having ten years experience in the fx world I am confident that I can better the rates offered by your bank.
GBPAUD Forecast – will we hit 1.60?
The rally on GBPAUD seems well underway with major concerns looming over the value of the Australian dollar. Anyone selling AUD to buy GBP upset they missed out on rates a few weeks ago should really take stock of the current market as it is likely rates will only get worse.
The Australian bank have cut raters lower and surely it is only a matter of time before they cut again as looming concerns over the future direction of the Australian economy persist. The pound too has been strengthening in recent weeks having avoided the triple dip so the forecast is the GBPAUD rate will move higher towards the 1.60 level.
I would therefore suggest anyone buying Australian dollars holds to see if things get better, whilst those selling Australian dollars move sooner. Ultimately for both buyers and sellers there will be spikes to take advantage of and this is where our service comes in. We can highlight movements in and out of your favour as well as highlight future events which may move the market for you.
For more information on news and events that will impact your exchange rate, please feel free to contact me. Even if your transfer is just a one off our specialist service is designed to save you money through a better rate than the banks. For more information on what we can achieve and how it all works please contact me Jonathan directly on jmw@currencies.co.uk
I look forward to hearing from you
GBPAUD touches 1.50, where now for the pair?
GBPAUD has finally creeped back up to the best levels seen since February 2013. The surge higher was all on the back of better than expected GDP data for the UK. This begs the question where now for the GBPAUD pair?
I expect the rate will come back lower below 1.50 as the economic conditions for the UK remain weak. Having said that as we get new economic data out for the UK early next month we will see the pound react. Investors will want to know whether the latest data is indicative of sustained economic growth or if there is still inherent underlying weakness for the pound.
Regarding the Australian side even lower interest rates failed to weaken the currency and the prospects remain very good for China and the global economy. China may have wobbled slightly but it is unlikely it will crash. If the UK economy and US economy are growing, this should ensure growth in China, although the Eurozone situation is worrying. China does a lot of trade with Europe and if there is a prolonged recession it will affect Chinese growth which will weigh on the AUD.
These trends may take many years to manifest but are worth being aware of. If you have a transaction to consider I suggest being aware of all of your options. We offer the option to forward buy currency which means you can fix today’s rate now for a future date. For more information on how our service works, please feel free to contact me Jonathan directly on jmw@currencies.co.uk
When will we hit 1.50 again?
The is the question I am being asked and it is a very valid one. I think it is fair to say that it will happen, but it is going to take a big push and a reversal of the current market sentiments.
If you want to understand what moves the Australian dollar, you need to understand a little about sentiment and how investors view the Australian Dollar. Despite being one of the best performing economies in the last few years the Australian currency is viewed as risky. This is because historically viewed against the pound, dollar, euro and Yen, it was. Not in a sense that it would collapse but in the sense that is was more susceptible to market fluctuations and hence investing in the Aussie by pension funds, hedge funds and banks was ‘riskier’.
Fast forward to 2008 and you can see that as uncertainty rocketed the Aussie weakened but then as it became apparent Australia would be insulated from Western problems and could rely on Chinese demand for their raw materials, the Aussie soared in value. The Aussie has become more and more popular this year as China’s economy has remained bouyant. If you are looking to trade at 1.50 buying Aussie or indeed have targets selling AUD to buy GBP, please contact me on jmw@currencies.co.uk and I can watch rates for you.
The Aussie gains against sterling have also of course been aided by the sterling decline of late. Should you be looking to hit 1.50 you will need to see some uncertainty creep into the market as well as the pound find value. Cyprus does create a bit of uncertainty which could lead to an Aussie sell-off but alone it does not represent a significant threat to the global economy. The pound too looks unlikely to find much support so unfortunately the immediate outlook for anyone buying Aussie looks bleak.
Longer term I do expect some moves higher once sterling finds it feet. If you have a currency transaction to consider involving the pound or the Aussie (or indeed any other currency) please don’t hesitate to contact me. I work as a specialist currency broker for a leading UK currency brokerage and can outline possible solutions to any currency transfers which you need to consider at no cost or obligation. Please contact me Jonathan on jmw@currencies.co.uk or call 00 44 1494 787 478 for more information.
GBPAUD nearly touching 1.50…
The current decline in GBPAUD which we have been expecting is pretty much now upon us. With positive data from China and a very weak pound there is not too much to be hopeful for, for anyone selling the pound and buying Australian Dollars.
Anyone interested in GBPAUD who is holding out for 1.60 could be waiting a very long time and may soon need to get used to a rate in the 1.48-1.49 level!
This week there is much sterling data, you can read my post on www.poundsterlingforecast.com for an assessment of why the pound could really struggle this week. We could therefore see rates on GBPAUD become much worse for AUD buyers, much better for AUD sellers.
Don’t miss out! If you are considering a currency exchange and would like to learn when is a good time to trade and how we can provide an exchange rate much better than the banks please feel free to make contact with me Jonathan directly on (+44) 01494 787 478 or email jmw@currencies.co.uk. We welcome questions from any clients based in Australia and are confident we can get you a better deal!
I look forward to hearing from you.
Hard Landing? This does not even look like a soft landing! AUD Strength Resumes
Overnight Chinese data has again impressed helping the Aussie to new highs against many of its peers! The Chinese trade balance increased from 19.6 bn to 31.6 bn and exports rose 14%. Is this the sign of an economy in decline about to suffer a hard landing? Is this even a sign of an economy about to suffer a soft landing?!
Iron Ore prices are very strong and the Aussie touched new highs against the JPY and is only a few cents from the all time high against sterling.
It looks like for the time being anyone buying Aussie dollars will have to accept a lower than hoped for price. But what for the longer term outlook? Well the current levels are a reflection of the current trends and themes in the market place. The Australian economy well supported with strong mineral resources and a obviously still buoyant Chinese partner is an easy match for the UK pound, representative of a weak economy with low growth prospects and looming disasters in the form of a loss of triple A credit rating and a triple dip recession.
The future does not look bright for AUD buyers, but for AUD sellers this looks like a great time to at least prepare to enter the market.
For a free no obligation discussion of how I can help you achieve the best rates of exchange for your money transfers please speak directly to me on jmw@currencies.co.uk
Reserve Bank of Australia Minutes
RBA Minutes were published over night which showed that there might be room for further easing. The central bank did suggest that the current interest rate of 3.25% was ‘appropriate’ but my feeling is that we have a cut round the corner. The RBA will not meet in January or February which means that is there is further movement it is likely to be in December as waiting till March could harm the economy during that period. The recent slowdown in the mining industry meant that the RBA have downgraded their GDP forecast for 2013 to less than 2.75% before climbing again in 2014 to 3%. As always it is important to consider these forecasts but at the same time it is almost impossible to predict accurately as there are so many variables which could affect the economy. My personal thoughts are that as long as China continues its investment in Australia and buying up raw materials/resources the Australian Dollar will remain relatively strong against Sterling, Euro and US Dollar.
A recent article published by the International Monetary Fund has suggested that the Australian Dollar may be used as an official reserve asset. As one of the world’s leading commodity-rich currencies this seems like a good idea at the moment as with such enormous reserves particularly in Western Australia the expansion of this particular area could keep the AUD strong. The idea behind the plan is to firm up the global banking system by having different styles of industry/commodities to support the wider global economy to avoid a future problem like the one experienced during the credit crunch of 2008.
Tomorrow the Bank of England publishes its minutes so any signs of further Quantitative Easing may cause an opportunity for Sterling to increase against the Australian Dollar so if you have a currency requirement and want to save money when buying Australians Dollars compared to using a bank feel free to contact me directly on email Tom Holian teh@currencies.co.uk
GBP AUD Exchange Rate Improves following problems in Europe
GBPAUD exchange rates have risen today by almost a cent after Greece announced that their economy has shrunk by 7.2% in the third quarter compared with 12 months ago. This was even worse than the previous quarter which saw the economy contract by 6.3%. Greece has been in recession for four years now and has been one of the problem regions across the Euro zone. With their third tranche of bailout funds due next week this could provide some stability and encourage investors to look at buying Australian Dollars again but for the next few days I think we could see a return of strength for the Pound.
In the UK’s Quarterly Inflation Report this morning Mervyn King suggested that economic growth will struggle for at least the next three years. Even though previous quarter’s figures showed a growth of 0.9% Mervyn King said that output could fall away in the quarter we’re in at the moment. The impact this could have on exchange rates could be negative for Sterling if these comments end up coming true as confidence will be lost for the Pound and therefore we could see Australian Dollar strength meaning less AUD for your GBP.
Tomorrow is a huge day for the currency markets as both France and German GDP is released. If the results are lower than anticipated we could see Euro weakness which in turn could see Sterling improve against all majors an investors look to the Pound as a safe haven currency. First thing we see the release of Australian Consumer Inflation Expectation figures so if you’re thinking about buying Australian Dollars soon then get in touch to see how we can help save you money when transferring currency. Tom Holian teh@currencies.co.uk and I look forward to hearing from you.
Will GBPAUD continue to improve? GBPAUD 12 week high
GBPAUD has hit levels not seen for 12 weeks, breaking 1.55. The rate hit a low of 1.4729 on the 7th August and since then has continued to weaken. This was all due to signs that there is a slowdown continuing in China and Japan, two of Australias main trading partners. Warnings followed these data releases that the Australian mining boom which has been one of the driving forces behind the AUD’s dominance in recent years would infact turn to recession.
Last night The Reserve Bank of Australia kept Australian Interest Rates on hold as expected and we have seen no significant change in their current policy. There is talk of further rate cuts later this year, but even so, with rates having been cut significantly in the last year, the Aussie retains much of its strength. Whilst quite clearly there has been a change in the mood on the rate I expect longer term the Aussie will retain much of its strength.
In the shorter term we can look to economic data on the horizon, notably Australian GDP due early tomorrow morning UK time at 01.30. The expectation is for Aussie growth data to show a slowdown which of course will affect the rate. I would not therefore be suprised to see the Aussie lose a bit more ground before the end of the week. Clients buying Aussies may wish to hold out a little longer just to see what happens overnight.
The Australian Dollar is affected massively by a wide range of factors. An understanding of what moves the market and why is key to understanding where it may go. As a Senior specialist currency broker for one of the UK’s largest currency brokerages I can assist with all the tools necessary to secure the very best rates of exchange.
For further information on the rate please feel free to speak directly with me Jonathan Watson on jmw@currencies.co.uk or call 01494 787 478.
I look forward to hearing from you
RBA Interest rate left unchanged
Australian Dollar Forecast Exchange rate information Best Rates GBP to AUD Buying Australian Dollars or Selling Australian Dollars
The Reserve Bank of Australia left interest rates on hold at 3.5% overnight which as discussed yesterday was not much of a surprise. We were expecting interest rates to remain unchanged but there is some speculation that rates could be cut later this year to stop the recent Australian Dollar strength. With the Aussie Dollar trading at around 1.53 this morning the problem it creates is that for the economy excluding the mining industry is that Australian goods and services become too expensive therefore potentially having a harmful effect on the Australian economy. Over the last two months Sterling vs Australian Dollar has dropped by around 9 cents and the AUD has also gained against most other majors too. If interest rates are cut later this year we may see a small rise for the Pound against the AUD.
The UK releases its own interest rate decision on Thursday with some anticipation of further Quantitative Easing. I feel that if we do see more QE we could see some weakness for the Pound creating some excellent selling opportunities for the AUDGBP. The summit in Europe last week has helped the AUD gain against Sterling and Euro and if Europe continues to show solidarity we could see gains for the AUD.
If you need to make a currency transfer but do not know how best to arrange it to save money send me an email and I’ll happily explain the process to you. teh@currencies.co.uk
